** Citi flags caution on Australia's Lovisa LOV.AX due to slower-than-expected store expansion and new competition, increasing risks despite potential long-term EPS growth
** Downgrades fast-fashion jeweler retailer to "sell" from "neutral", cuts TP to A$25.95 per share from A$32.16
** Brokerage sees growth risks as stock is trading in the ~33x FY25 price-to-earnings ratio, offshore execution issues, and store quality concerns, driven by softening foot traffic trends and sales growth
** Says that despite significant shares held by LOV's outgoing CEO and major investor, the new market entrant Harli + Harper elevates the risk level
** Broker cuts FY25 to FY27 net profit after tax estimate for co by 5% to 11%, driven by the decrease in store roll-out expectations
** Three of 15 analysts rate the stock "buy", nine "hold" and three as "sell" or lower; their median PT is A$30.12 – LSEG data
** Stock up ~19% YTD, as of the last close
(Reporting by Kumar Tanishk in Bengaluru; Editing by Lisa Shumaker)
((Tanishk.Kumar@thomsonreuters.com;))
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