BUZZ-Citi remains "neutral" on Australia's Lovisa, flags risks

Reuters
2024-11-15
BUZZ-Citi remains "neutral" on Australia's Lovisa, flags risks

** Citi says Lovisa's LOV.AX rapid expansion and unexpected CEO change pose potential risks, despite significant long-term EPS growth

** Maintains "neutral" stance at TP A$32.16, saying FY25 price-to-earnings ratio of ~31x doesn't reflect growth risks

** Fast-fashion jewellery retailer's in-store offshore execution in key markets and new vs old store quality concerns Brokerage

** Notes LOV's ex-CEO has launched Harli + Harper, a new market entrant with shareholders believing that it can potentially draw customers away

** 3 of 15 analysts rate the stock "buy", 10 "hold" and 2 "sell"; their median PT is A$30.53 – LSEG compiled data

** Stock up 23.6% YTD as of the last close

(Reporting by Kumar Tanishk in Bengaluru)

((Tanishk.Kumar@thomsonreuters.com;))

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