Lovisa and the Amazon Effect

I am thinking of buying some shares in Lovisa (LOV) but I am worried about Amazon effecting sales etc. What do you think?

Regards

 

A: I think you should have a concern about the Amazon affect, although with their business model and opportunity to expand offshore, I am not sure that it will have that much impact.

The market doesn’t seem too concerned given the way that the share price has rocketed ahead since their profit report.

On valuation, you might like to note that Lovisa (LOV) is trading at quite a material premium to the analysts forecasts. The current broker consensus is $5.10, 14.9% less than the last market price of $6.00.

regards


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