Bell Potter upgrades Australia's Adore Beauty to 'buy' on growth potential

Adore Beauty

16/10/2025 23:26

** Analysts at Bell Potter upgrade recommendation on Australia's Adore Beauty Group ABY.AX to "buy" from "hold"; keeps PT unchanged at A$1.25

** Says stock upgrade after ABY trading at far more attractive FY26 EV/EBIT multiple and expectations of positive trading update at November AGM

** Brokerage was positive on co due to solid FY26 earnings growth profile, future margin accretion and new strategy performing to plan

** Views combination of store rollout, private label and retail media contribution as key drivers to ABY's growth going forward

** Adds positive November update would largely be led by full 10 store contribution to 1Q FY25 as well as about 3 stores partially contributing

** Stock up 8.1% YTD

 (Reporting by Rishav Chatterjee in Bengaluru)

 ((Rishav.Chatterjee@thomsonreuters.com))