Shares in Lovisa Holdings Ltd (ASX: LOV) have fallen about 20% since the company reported its full-year result, creating a buying opportunity, according to the team at UBS.

UBS has released a new research note on the company with a bullish share price target, which I’ll get to shortly.

First, let’s have a look at Lovisa’s full-year results.

Profit and revenue heading in the right direction

The jewellery retailer boosted total revenue 17.6% to $938.8 million, while comparable store sales were up 2%.

The company opened 160 new stores during the year, to have 1136 at the end of June.

Net profit came in at $95.6 million, up 10.7%, while the dividend was increased 22.2% to 33 cents per share.

Lovisa Chief Executive Officer John Cheston said of the result:

Lovisa has once again been able to deliver strong global sales and profit growth, with the highlights being continued growth in the Americas and Europe and another exceptional Gross Margin performance. I would like to share my appreciation to the global team for their hard work in delivering these outstanding results and continuing the global momentum of the business.

Lovisa said its ongoing focus on the quality of the store network resulted in 43 underperforming stores being closed and 12 relocations.

The company added:

We will continue to focus on store profitability and where landlords don’t provide a profitable rent we will take action on stores not delivering to required levels of return on investment. With a footprint now in over 50 markets and increased support structures in place we are well positioned to continue our global rollout across both existing and new markets. We continue to focus on opportunities for expanding both our physical and digital store network, with structures in place to drive this growth in existing and new markets and formats, with a long new store runway supporting continued store rollout momentum. Our balance sheet remains strong with available cash and debt facilities supporting continued investment in growth.

Lovisa shares looking cheap

UBS said with the share price having weakened, the risk-reward for the shares “is now attractive and we upgrade our rating from neutral to buy”.

UBS added:

LOV enjoys significant store growth potential assisted by a consistent format across markets while leveraging a low ticket price and socialisation by a predominantly youth consumer base, typically a stronger consumer cohort. Store growth, the key EBIT driver, was strong in FY26 (160 gross, 12 relocations, 43 closures) with this expected to continue in FY27.

UBS has a price target of $28 on Lovisa shares compared to $23.07 at the time of writing.

Lovisa is valued at $2.4 billion.

The post What sort of upside is UBS predicting for Lovisa shares? appeared first on The Motley Fool Australia.

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Motley Fool contributor Cameron England has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Lovisa. The Motley Fool Australia has recommended Lovisa. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Retirement doesn’t have to mean stopping work overnight.

For Australians aged 60 and over, a Transition to Retirement (TTR) strategy could provide a way to cut back hours while using superannuation to help bridge the income gap.

How does a TTR strategy work?

The basic idea is to replace some employment income with payments from your superannuation.

You could reduce your working hours and salary, then draw an income from a TTR pension to make up some of the difference. At the same time, you may be able to salary sacrifice part of your remaining salary into super.

Concessional contributions, including salary-sacrifice contributions, are generally taxed at 15% within super, which can be below your marginal tax rate.

Done carefully, this can create a useful reshuffle of your cash flow: less work, some income from super and continued contributions to your retirement savings.

Here’s what it could look like

Imagine you’re 60 and earn $100,000 a year. You decide to move to a four-day working week, cutting your salary to $80,000. You then draw $20,000 from a TTR pension to help replace the income you’ve given up.

At the same time, you salary sacrifice $15,000 of your wages into superannuation.

The result is a potentially more flexible path towards retirement. You’re working less, drawing some income from super and continuing to put money into your retirement account.

For someone keen to ease into retirement rather than make an abrupt switch, that could be appealing.

But there are catches

TTR isn’t a magic solution, and the rules matter.

Employer Super Guarantee contributions and salary-sacrifice contributions generally count towards your annual concessional contributions cap. Exceeding the cap can result in additional tax.

TTR pensions also have minimum and maximum withdrawal rules, so you can’t simply withdraw whatever amount you want.

Perhaps most importantly, every dollar withdrawn from superannuation is a dollar that is no longer invested in the fund. Drawing too much too early could reduce the amount available to compound for your later retirement years.

Foolish takeaway

A TTR strategy can offer an appealing middle ground between full-time employment and full retirement.

For eligible Australians, combining superannuation withdrawals with salary sacrifice may help reduce working hours, manage taxable income and continue building retirement savings.

However, the most suitable approach depends on your income, super balance, age, contributions and retirement goals. The relevant rules can also be complex, so speaking with a licensed financial adviser or tax professional before making changes may be worthwhile.

For some Australians, though, the concept is compelling: work less, replace some lost income with super and keep building your retirement nest egg.

The post Turning 60? You could be leaving superannuation money on the table appeared first on The Motley Fool Australia.

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Motley Fool contributor Marc Van Dinther has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX biotech stock PYC Therapeutics Ltd (ASX: PYC) has enjoyed a stellar run over the last 12 months. 

In that span, its share price has risen over 87%, including 37% in 2026. 

A new report from the team at Bell Potter suggests this growth is likely to continue thanks to several tailwinds. 

Company overview 

PYC is a clinical-stage biotechnology company developing multiple drug candidates for rare inherited diseases. 

The company has its HQ, lab facilities, and majority of staff based in Perth, WA, as well as personnel based in the US for clinical, regulatory, and manufacturing functions. 

The company develops novel drug candidates using its internal technology platform, consisting of targeted RNA therapies called antisense oligonucleotides and proprietary drug delivery technology referred to as cell penetrating peptides.

The team at Bell Potter believes its strong growth profile could lead to further growth in the next 12 months. 

Making progress

Bell Potter remains positive on this ASX stock. 

It has a speculative buy rating and increased price target of $3.00 (previously $2.30) on the company. 

Much of the optimism centres around its PYC-003 experimental drug candidate being developed to treat autosomal dominant polycystic kidney disease (ADPKD). 

The genetic condition that causes cysts to grow in the kidneys. 

Early safety results are encouraging, with only 10% of 50 single-dose subjects reporting treatment-related side effects, none serious, and no concerning kidney, liver, magnesium or potassium changes.

The big test now is whether PYC-003 actually works. 

Efficacy data from single-dose studies are expected in the next 1–2 months, while the more important 6-12 month repeat-dose results are expected in 2H 2027 and 1H 2028. 

With around 120,000 US Type 1 ADPKD patients, Bell Potter sees a potential US$12bn+ market, while PYC’s ~$670m cash balance provides strong funding. 

In short, the safety story looks good, but clinical efficacy will determine whether the big potential becomes reality.

Strong upside 

If this ASX stock was to reach Bell Potter’s target, it would be a further 30% increase from current levels. 

The next 12 months are likely pivotal for the biotech company. 

PYC is fast approaching a crucial window for this asset with upcoming efficacy data from single-dose studies in the next ~1-2 months and, more importantly, data from repeat-dose studies after 6-12 months of treatment expected in 2H CY27 and 1H CY28. It is these latter readouts which will be highly instructive for demonstrating whether PYC’s compelling preclinical data package translates into improved clinical outcomes in patients. The company has a war chest of ~$670m cash as at 30-June-2026 for which it can freely prosecute its clinical development objectives across multiple assets well into the 2030s.

The post This exciting ASX biotech stock is up 37% year to date and tipped to keep rising appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Bell has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.