Lovisa Holdings' acquisition of the beeline GMbH retail stores will give the company 84 stores across six European countries. Morgan Stanley notes the stores are similar to Lovisa's current portfolio.

Lovisa is looking to acquire an additional 30 stores in France and is expected to be completed in the last quarter of FY21.

The broker considers the EU acquisition compelling with the improving comps showing the resiliency of the model.

Seeing the risk/reward as evenly balanced, Morgan Stanley maintains its Equal-weight rating with the target rising to $11.50 from $7.15. Industry view: In-line.

Sector: Retailing.

Target price is $11.50.Current Price is $11.48. Difference: $0.02 - (brackets indicate current price is over target). If LOV meets the Morgan Stanley target it will return approximately 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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