Lovisa Holdings, an Australian jewelry retailer, is witnessing an optimistic shift in its market perception.

Citi analysts have improved the company’s rating and target share price, going from a ‘sell’ to ‘neutral’, and raising the target to A$22.30 from A$16.00.

The company’s FY23 Net Profit After Tax (NPAT) saw a growth of 20.1%, amounting to A$68.2 million, due to cost pass-on to customers and growth of the company’s store network.

Their FY24 store expansion expectations are under review, with Citi predicting around 976 stores by FY24, up from 801 in FY23.

Nonetheless, the immediate future of store rollouts is perceived with caution.

However, Citi does expect an upswing in like-for-like sales during the rest of 1H24.

Thanks to better than expected cost management, FY24 and FY25 NPAT estimations have been increased respectively by 5% and 12%.

With 9 of 13 analysts rating Lovisa a ‘buy’ or higher, the median price target is at A$25.25 according to Refinitiv data.

Lovisa Holdings (ASX:LOV) is an Australian-based retailer specializing in fashion-forward jewelry and accessories.