In Mid January UBS came out with an analyst report downgrading Lovisa’s stock to a ‘sell’ rating, with a 12 month price target of $27. The analysts thought that store growth is slower than market expects. Lovisa’s share price fell 10.5% in response. Humorously – less than 10 days later – Morgan Stanley published a ‘buy’ report on Lovisa which resulted in an 8% share price rise.
I believe this is a textbook example of how broker incentives are misaligned with investors goals.
