While Morgan Stanley believes the resignation of Managing Director and CEO Shane Fallscheer will likely trigger a negative market reaction, execution risk for the global expansion may be reduced in the longer term. The new ceo has a strong global retail background.
Moreover, the process appears well panned and Brett Blundy (chairman and major shareholder) will provide continuity, believes the analyst. The $21 price target and Overweight rating are unchanged. Industry view: In-line.
Target price is $21.00.Current Price is $18.37. Difference: $2.63 – (brackets indicate current price is over target). If LOV meets the Morgan Stanley target it will return approximately 13% (excluding dividends, fees and charges – negative figures indicate an expected loss).