Fashion jeweller/retailer LOV delivered an excellent result back in August with revenue coming in at $459m, up 59% on FY22 while its high gross margins climbed to 78.9%. However, the stocks more than doubled through 2022 and we believe it’s fully priced around $22.50 trading on 31.5x earning for FY’23.
- We believe LOV is surrounded by relatively “cheap alternatives” in the Retail Sector making it hard to envisage any meaningful upside over the coming months.
MM is neutral to bearish LOV short term
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