** Analysts at Citi upgrade target price for Universal Store Holdings UNI.AX to A$8.91/shr from A$7.90/shr to "reflect consistent topline execution in a challenging consumer environment"

** Brokerage, however, downgrades FY25-FY27 EPS estimates by 4% to 3% as higher cost of doing business (CODB) offsets better sales for the apparel retailer

** Co reported on Wednesday that CODB of sales was up 1% on underlying cost inflation and investment in team capability for first 17 weeks of FY25

** Brokerage says co leaves some questions unanswered, such as what initiatives UNI would be taking to reduce costs over FY25

** However, Citi says UNI "doing a very good job" at sourcing and merchandising product, translating to strong underlying sales growth and reduced need for lowered prices

** Stock up 88% YTD, as of last close

(Reporting by Shivangi Lahiri in Bengaluru)

((shivangi.lahiri@thomsonreuters.com))