Stifel starts OVS with 'buy' on undervalued growth story

OVS SpA

07/06/2023 10:05

** Shares in OVS  OVS.MI  rise 4% after Stifel starts
coverage of the stock with "buy", saying the Italian fashion
retailer's ongoing transformation is not fully appreciated by
the market
    ** It says OVS could be a beneficiary as shoppers reduce
spending due to inflation, considering its value offer, improved
merchandising and repositioning of Piombo brand attract new
customers
    ** "While leveraging a best-in-class sourcing infrastructure
and improving its merchandising as well as distribution, OVS
appeals to an increasing customer base," Stifel says
    ** The broker notes OVS has improved in the past few years,
moving from a pure vertical value retailer to an open
multi-brand platform relaunching overlooked brands
    ** This has led to a healthier balance sheet with strong
cash conversion and recovering return on invested capital, it
adds
    ** Out of six analysts that cover OVS, four rate it "strong
buy" or "buy" and ​two "hold"

 (Reporting by Alberto Chiumento)
 ((alberto.chiumento@thomsonreuters.com))