Australia's SkinKandy hits record high, Jarden initiates coverage with 'overweight'
BUZZ-Australia's SkinKandy hits record high, Jarden initiates coverage with 'overweight' ** Shares of Australia's SkinKandy SK1.AX rise as much as 4.7% to A%2.88, their highest level since shares began trading on May 25
** Jarden initiates coverage of SK1 with "Overweight" and A$2.90 PT
** Investment bank says the piercing services and jewellery company ticks many boxes, including an easily replicable store format, an underserviced market, net cash, and fast store paybacks
** Jarden's proprietary consumer survey supports SkinKandy's market position, but also suggests constraints on the size of its potential customer base and future store economics
** Despite this, Jarden forecasts EPS growth of 17% a year between FY27 and FY30, and sees 19%-28% upside potential over the medium term from better profit margins
** Key risks to performance include international expansion not working, piercings going out of fashion and quality of new stores opened, Jarden says
(Reporting by Shruti Agarwal in Bengaluru)