Lovisa Holdings Ltd (ASX: LOV) shares are up strongly over the last 12 months.
Since this time last year, the fashion jewellery retailer's shares have risen almost 30%.
However, as you can see on the chart below, things were much rosier for shareholders until a couple of months ago.
Since hitting a 52-week high of $27.21, Lovisa's shares have tumbled by 28% to $19.60.
Does this make now a good time to invest? Let's find out.
Are Lovisa shares a buy under $20?
A number of brokers are bullish on the company and see plenty of value in its shares at the current level.
For example, Morgans has an add rating and a $26 price target on its shares, and Bell Potter has a buy rating and a $30.50 price target on them. This implies a potential upside of 30% to 55% for investors over the next 12 months.
Bell Potter has referred to Lovisa as a "a global gem" and believes it has a huge growth opportunity ahead. It said:
We believe the company will be able to execute on the large store opportunity ahead, having penetrated ~20% of the growth runway to-date (BPe) and execution risks remain low as a strong global player.
In addition, our very own in-house analysts at The Motley Fool Australia are fans of Lovisa. This is due to the company's wide margins, strong growth prospects, and experienced management team. They recently commented:
Alongside growth, Lovisa is highly profitable, with gross margins of 80% and the company achieved operating profit of $70.1 million in the first half of FY2023, up 38% compared to the previous corresponding period. The company is also backed by a strong and experienced leadership team.
