LOV has been an enormous success since COVID, delivering impressive growth, including opening 74 new stores in the 1H. That strong growth has pushed valuations well above its peers, not necessarily a bad thing if they can maintain or accelerate that trajectory, however, we think delivering on this is likely to be more challenging. Ultimately, we are not fans of the risk/reward into new highs, i.e. we like the stock but not today’s price.
- We like LOV as a business, but following the departure of its long-serving CEO, it’s hard to get excited about the stock around new all-time highs.
MM is neutral LOV around $34
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