Morgans feels sales will gather momentum over the rest of the year following a trading update by Universal Store Holdings for the first 20 weeks of FY22 that exceeded expectation. Moreover, the rate of store expansion is outrunning forecasts.

The analyst notes the private label concept Perfect Stranger (3 of the group's 76 physical stores) will shortly launch its own standalone website. The broker lifts its target price to $8.90 from $8.72. The Add rating is unchanged.

Sector: Retailing.

Target price is $8.90.Current Price is $7.69. Difference: $1.21 - (brackets indicate current price is over target). If UNI meets the Morgans target it will return approximately 14% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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