The Adore Beauty Group Ltd (ASX: ABY) share price is having a much-needed positive day.
In afternoon trade, the online beauty retailer's shares are up 7% $1.06.
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Why is the Adore Beauty share price rising?
There have been a number of catalysts for the rise in the Adore Beauty share price today.
The first appears to have been a rebound in the tech sector today. This has seen the S&P/ASX All Technology Index jump 1.5% today, which compares favourably to the ASX 200 index and its 0.35% gain.
In addition to this, it is worth noting that the Adore Beauty share price sank to a record low of 98.5 cents on Wednesday. This could mean that some bargain hunters are swooping in on the belief that its shares have been oversold.
But the main driver could be a broker note out of UBS this morning.
While the broker believes it is too soon to be positive on online retailers, it has retained its buy rating on Adore Beauty's shares with a reduced price target of $2.10. This is approximately double where its shares trade today.
Unfortunately for Kogan.com Ltd (ASX: KGN) and Temple & Webster Group Ltd (ASX: TPW) shareholders, their shares aren't faring too well today. That's because UBS has downgraded them to sell and neutral ratings, respectively. It has also retained its neutral rating on Redbubble Ltd (ASX: RBL) shares.
UBS has concerns about unit economics, which it believes are worse that before the pandemic, as well as supply chain and consumer spending headwinds. Food for thought.
