** Jefferies says consumer discretionary spending in Australia has been impacted by sticky inflation alongside rate cut expectations turning to the rises

** Adds the affordable/mid-market jewellery sector in the country has seen a shrinkage of store footprints in the past 18 months

** Jefferies says while Lovisa Holdings LOV.AX is the market leader in the sector, consumer spending remains pressured and will likely remain so in the foreseeable future

** Brokerage cuts price target to A$32 from A$33.4

** Also cuts EPS estimate by 8%, 7% and 5% for fiscals 2026, 2027 and 2028, respectively

** Stock up 2.1% so far this year, as of last close

(Reporting by Nikita Maria Jino in Bengaluru)

((Nikita.Jino@thomsonreuters.com;))