In a report released today, Anna Andreeva from Oppenheimer maintained a Buy rating on L Brands (NYSE: LB), with a price target of $45. The company’s shares opened today at $33.15, close to its 52-week low of $30.72.
Andreeva observed:
“VS’s ’18 results thus far aren’t much different than ’17, with third consecutive month of margin miss in April, as the brand continues to need to promote to drive traffic. While mall traffic declined 4% last month, VS’s traffic was down HSD; there are some green shoots with newness (still strong response to T-shirt/Illusions bras, PINK lounge performed better), some of the core franchises that haven’t been updated are weaker (Body by Victoria). Lowering EPS est. and PT ($0.33/$3.00 for 2Q18/’18); expect similar need to trade margins for comps at VS (some of the weaker Body by Victoria product/PINK swim to be added to June semi-annual sale), while wage pressure kicks in more in 2Q18 (modeling SG&A dollars +16%); view ~7% dividend yield as safe.”
According to TipRanks.com, Andreeva is a 4-star analyst with an average return of 5.0% and a 49.4% success rate. Andreeva covers the Services sector, focusing on stocks such as Lululemon Athletica Inc, Urban Outfitters, and Children’s Place.
Currently, the analyst consensus on L Brands is Hold and the average price target is $41.92, representing a 26.5% upside.
In a report issued on April 26, RBC Capital also reiterated a Buy rating on the stock with a $44 price target.
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The company has a one-year high of $63.10 and a one-year low of $30.72. Currently, L Brands has an average volume of 4.5M.
Based on the recent corporate insider activity of 27 insiders, corporate insider sentiment is negative on the stock.
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L Brands, Inc. engages in the retail business. It is focused on women’s intimate and other apparel, personal care and beauty categories. It operates its business through the following segments: Victorias Secret, Bath & Body Works, and Victoria’s Secret and Bath & Body Works International.
