Australia's Lovisa gains; UBS lifts rating to 'buy' on attractive valuation

Lovisa Holdings

14/09/2026 04:06

** Shares of Australia's Lovisa Holdings LOV.AX rise as much as 7.4% to A$23.24, marking their biggest intraday pct gain since August 26
** Analysts at UBS upgrade the stock to "Buy" from "Neutral", saying the risk-reward on Lovisa shares is "now attractive" given recent forward price-to-earnings multiple de-rating
** Fast fashion jewellery retailer's shares have fallen over 22% YTD
** Growth is supported by store network expansion and improved operations to better manage competitive threats, UBS adds
** Says store growth, the company's key EBIT driver, was strong in FY26, expecting this to continue in FY27
** Adds Jewels segment losses are forecast to moderate
** UBS increases its FY27 and FY28 EPS by 5.1% and 4.8%, respectively, citing higher EBIT margins and lower net
interest and effective tax rate

 (Reporting by Shruti Agarwal in Bengaluru)
 ((Shruti.Agarwal@thomsonreuters.com;))