Citi analysts rate Adore Beauty's iKOU acquisition as 'high-risk'

Adore Beauty

02/07/2024 19:18

** Analysts at Citi rate Australia's Adore Beauty's  ABY.AX 
acquisition of beauty & wellness brand iKOU as "high-risk"
    ** Brokerage says co "spent the majority of its cash balance
for this acquisition, resulting in a riskier balance sheet"
    ** Citi, however, says acquisition improves co's exclusive
range and adds ABY "is a good operator in a tough category"
    ** Remains "buy" rated but cuts target price to A$1.50 per
share
    ** One of four analysts rate the stock "buy" or higher, two
"hold" and one "sell" or lower; their median PT is A$1.32 – LSEG
data
    ** Stock is down over 39% this year as of last close

 (Reporting by Rajasik Mukherjee in Bengaluru)
 ((Rajasik.Mukherjee@thomsonreuters.com;))