Analysts at brokerages Morningstar and Citi anticipate that fashion retailer Premier Investments (ASX:PMV) will face increasing labour costs.

Citi projects labour cost growth to be 4.5% in fiscal 2024 and maintains a “neutral” stock rating, with a valuation for PMV at A$23.24 per share.

On the other hand, Morningstar retains a fair value estimate of A$19.50 per share and a “medium” uncertainty rating for the stock.

Despite Citi believing the stock to be reasonably priced, Morningstar views the shares as overvalued at the current market level.

Both brokerages foresee that Premier Investments (ASX:PMV) will endure challenges due to customers scaling back on fashion spending and a deceleration in garment expenditure, as well as increased competition from other stores.

Among 13 analysts, six rate the stock as a “buy” or higher, four as a “hold”, and three as a “sell” or lower, according to data from LSEG.

The company’s stock has risen by 0.7% YTD, as of the most recent close.

Premier Investments (ASX:PMV) is a fashion retailer.