FBR Capital Raises Price Target on L Brands (LB) to $75 Following 2Q EPS Beat
- Wall Street surges to new highs; transports set record
- lululemon athletica (LULU) Tops Q3 EPS by 4c; Adj.-Comps Outpaced Views
- Abbott (ABT) Files Complaint to Terminate Alere (ALR) Acquisition
- Costco Wholesale (COST) Tops Q1 EPS by 5c; Comps Up 1%, 2% Ex-Gas
- After-Hours Stock Movers 12/07: (VYGR) (LULU) (HRB( Higher; (OHRP) (VRNT) (CMTL) Lower (more...)
News and research before you hear about it on CNBC and others. Claim your 2-week free trial to StreetInsider Premium here.
FBR Capital reiterated a Market Perform rating on L Brands (NYSE: LB), and raised the price target to $75.00 (from $68.00), following the company's 2Q earnings report. Adjusted EPS of $0.70 came in well above the consensus estimates of $0.57 and guidance at the high end of $0.50–$0.60.
Analyst Susan Anderson commented, "LB reported a 2Q16 adjusted EPS beat of $0.70, well above FBR/consensus of $0.58/ $0.57 and guidance at the high end of $0.50–$0.60, which was provided August 4 during its July SSS call. LB previously reported 2Q comps of +3%. The EPS beat was reflective of better-than-expected SG&A margin, driven by disciplined expense management and lower incentive comp. Reflective of the $0.10 beat, 2016 EPS guidance was increased to $3.70–$3.85 (versus FBR/consensus of $3.78/$3.73) from $3.60–$3.80 previously. EPS guidance for 3Q16 was initiated below expectations at $0.40–$0.45 (versus FBR/consensus of $0.50/$0.47). LB also increased its 2016 SSS guidance to flat/+LSD (vs. FBR/consensus of +1.3%) from flat. With the recent structural changes, we remain on the sidelines and look for comp stabilization at VS, increased visibility, improvement in beauty, or a more attractive entry point. With that said, we are increasing our price target to $75."
Shares of L Brands closed at $77.87 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Wedbush Raises Price Target on Francesca's (FRAN) Following 3Q Report
- MKM Partners Raises Price Target on Arista Networks (ANET) Following U.S. Customs and Border Protection Approval
- Credit Suisse Downgrades NetApp (NTAP) to Underperform
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!