In reviewing the February reporting season, Lovisa Holdings was a clear standout for Morgans. It’s felt the company will be able to deliver growth independent any downturn in consumer sentiment and spending.
The broker points out that across its coverage of retailers, 1H22 earnings (EBIT) beat expectations by 5.7%, and by far the largest upgrade to forecasts was reserved for Lovisa. The Add rating and $24 target are retained.
Baby Bunting ((BBN)) and Universal Store ((UNI)) also feature with Lovisa as the broker’s top picks in the sector.
Target price is $24.00.Current Price is $17.70. Difference: $6.30 – (brackets indicate current price is over target). If LOV meets the Morgans target it will return approximately 26% (excluding dividends, fees and charges – negative figures indicate an expected loss).