UBS downgrades Australia's Adore Beauty, cuts price target

Adore Beauty

21/11/2022 24:25

** UBS downgrades Australia's Adore Beauty  ABY.AX  to
"neutral" from "buy", slashes the price target to A$1.95 per
share from A$2.00
    ** Brokerage says it is downgrading the Australian online
retailer based on valuation grounds, adds that there is
uncertainty around sales growth rates and marketing costs for
the company 
    ** Says ABY is targeting 8%-10% earnings before interest,
tax, depreciation and amortisation margins in FY27 and more than
10% in the long-term, which can be viewed as ambitious, given
that co only reported 0%-2% EBITDA margin guidance for FY23E
    ** Broker estimates 8% EBITDA margins by FY28, with net
profit tax of about A$15 million
    ** One of six analysts rate the stock "buy" or higher, three
"hold" and two "sell" or lower; their median PT is A$1.75 –
Refinitiv data
    ** Stock has fallen 56% this year, as of last close
 (Reporting by Archishma Iyer)
 ((Archishma.Iyer@thomsonreuters.com;))