FBR Capital Cuts Price Target on L Brands (LB) to $69 Following 3Q
- S&P little changed as energy weighs but financials edge up
- Nestle Said Examining Takeover of Mead Johnson (MJN) - Source
- Fed's Yellen says 'makes sense' to gradually raise interest rates
- UPDATE: Fed Beige Book: Wages gain modestly in most areas amid tight job market
- Mallinckrodt (MNK) Announces FTC Settlement
Find out which companies are about to raise their dividend well before the news hits the Street with StreetInsider.com's Dividend Insider Elite. Sign-up for a FREE trial here.
FBR Capital maintained a Market Perform rating on L Brands (NYSE: LB), and cut the price target to $69.00 (from $75.00), following the company's 3Q earnings report. LB reported an adjusted EPS of $0.42, in line with the consensus of $0.40. The EPS beat was driven by lower tax rate of 36% versus 38% estimates. Management initiated 4Q EPS guidance of $1.80 to $2.00, below consensus of $2.03.
Analyst Susan Anderson commented, "LB reported a 3Q16 adjusted EPS of $0.42, in line with FBR/consensus of $0.40 and in line with guidance provided on October 31. LB previously reported 3Q sales up +4% from last year and 3Q comps of +2.1%. The EPS beat was reflective of a slightly lower tax rate, while GM and SG&A came in line with expectations. LB guided 4Q EPS to $1.85 to $2.00 versus FBR/consensus of $2.01/$2.03 and revised 2016 guidance to $3.56 to $3.71 versus $3.70 to $3.85 previously and FBR/consensus of $3.71/ $3.73. We like LB's execution, resilient businesses, focus on inventory management/ speed, and growth potential, but we believe the stock is fairly valued given expected headwinds in 4Q16/1H17 and uncertainty around the timing of a return to LB's longterm growth metrics."
Shares of L Brands closed at $67.93 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Credit Suisse Downgrades Himax Technologies (HIMX) to Neutral
- Target (TGT) PT, Estimates Cut at Buckingham Research Following Miss
- Canaccord Genuity Raises Price Target on Boeing (BA) Ahead of 4Q Release
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT Change
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!