** Australia's Lovisa Holdings' shares drops as much as 8.1% to A$27.460, their biggest intraday pct loss since Nov. 18

** UBS downgrades fast-fashion jeweller retailer to "sell" rating from "neutral"; trims price target to A$27 from A$29

** Brokerage sees reduced store growth potential as firm transitions to a global fashion brand, with modest recent growth and too aggressive expectations for 1H25E & beyond

** Notes underwhelming sales growth on a like-for-like $(LFL)$ basis, even when set against past periods of weak performance, which should have been relatively simple to exceed

** UBS cuts earnings estimates for FY25E, FY26E due to a less bullish approach to net new store growth and lower LFL sales growth

** Brokerage flags increasing competition concerns, especially from new market entrant HARLI + HARPA, founded by former LOV CEO

** Stock hits its lowest level since Nov. 26

** Stock gained 23.3% last year, continuing their bull run since 2021

(Reporting by Kumar Tanishk in Bengaluru)

((Tanishk.Kumar@thomsonreuters.com))