Analysts Are Bullish on These Services Stocks: L Brands (LB), Lions Gate Ent Corp Cl A (LGF.A)


There’s a lot to be optimistic about in the Services sector as 2 analysts just weighed in on L Brands (NYSE:LB) and Lions Gate Ent Corp Cl A (NYSE:LGF.A) with bullish sentiments.

L Brands (LB)

In a report released yesterday, Susan Anderson from B.Riley FBR reiterated a Buy rating on L Brands, with a price target of $49. The company’s shares opened today at $31.35, close to its 52-week low of $30.42.

Anderson noted:

“L Brands (LB) reported July SSS of +0.0%, below the B. Riley FBR/consensus estimates of +2.0%/ +1.8% and –7.0% LY . July’s merch margin declined significantly Y/Y , driven by more promotional activity at VS, slightly offset by better merch margin performance from BBW. Inventories per square foot increased +13% Y/Y , but only +4% on a 2-year basis, ending the quarter in line with management’s +HSD guidance excluding early shipments. BBW continues to outperform, comping +10% for the third month in a row, despite purposefully pulling back on promotional activity. Management also indicated that 2Q EPS is expected to come in at the high end of guidance of $0.30 to $0.35 vs. B. $0.34/$0.31, indicating guidance for 2018 is intact despite the sales/margin shortfall at VS.”

According to TipRanks.com, Anderson is a 4-star analyst with an average return of 6.9% and a 56.4% success rate. Anderson covers the Services sector, focusing on stocks such as Lululemon Athletica Inc, Ascena Retail Group, and Abercrombie Fitch.

Currently, the analyst consensus on L Brands is a Hold with an average price target of $35.45.

See today’s analyst top recommended stocks >>

Lions Gate Ent Corp Cl A (LGF.A)

Canaccord Genuity analyst Aravinda Galappatthige maintained a Buy rating on Lions Gate Ent Corp Cl A today and set a price target of $26. The company’s shares opened today at $23.50, close to its 52-week low of $21.54.

Galappatthige said:

“We expect investor sentiment to gradually improve through to the end of F2019, potentially allowing the stock to regain lost ground (LGF.A down 31.6% ytd) as Starz subs continues to tick up. As expected it appears that Q2/19 has already been boosted by the return of their flagship Power series supported by a breadth of solid titles including Vida and Sweet Bitter. As we get towards the latter part of the year we also expect an even more pronounced contribution from the OTT side as the new Amazon deals as well as the distribution arrangements with Hulu and YouTube TV begin to pay off.”

According to TipRanks.com, Galappatthige is ranked #2466 out of 4850 analysts.

Currently, the analyst consensus on Lions Gate Ent Corp Cl A is a Strong Buy with an average price target of $29.33, a 24.8% upside from current levels. In a report released today, Barrington also maintained a Buy rating on the stock with a $34 price target.

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