Goldman Sachs Sees 21% Upside in L Brands (LB) and Raises Rating to 'Buy'
- Record-setting rally pushes on as S&P ends week up 3 percent
- Trump's Cohn Pick Most Bullish Sign Yet for Banks - Cowen
- Unusual 11 Mid-Day Movers: (IDXG) (INVN) (EBS) Higher; (SCON) (DTEA) (DLTH) Lower (more...)
- 21st Century Fox (FOXA) offers to acquire Sky for GBP10.75/share
- Coca Cola (KO) Announces James Quincey to Succeed Muhtar Kent as CEO; Kent to Continue as Chairman
News and research before you hear about it on CNBC and others. Claim your 2-week free trial to StreetInsider Premium here.
(Updated - August 22, 2016 8:30 AM EDT)
Goldman Sachs upgraded L Brands (NYSE: LB) from Neutral to Buy with a price target of $94.00 (from $73.00), implying upside of 21%. Analyst Lindsay Drucker Mann thinks a bottom has formed and said the company's path for growth looks "very bright."
"2Q results have eased our concerns about how disruptive the new promotional strategy at Victoria's Secret (VS) would be on the business, and we believe a bottom is visible for productivity and margins. We believe VS can show sequential improvement in margins as it laps transient headwinds, while keeping comp declines contained in the near term. Longer term, LB remains a compelling secular growth story, with outstanding brand equity, best in class operating capabilities and high visibility growth drivers supporting mid-to-high-teens total return potential annually with no multiple expansion (EPS + dividends)," said Drucker Mann.
Shares of L Brands closed at $77.76 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Pivotal Research Upgrades Flowers Foods (FLO) to Hold
- Credit Suisse Upgrades CVR Refining (CVRR) to Outperform; Most Exposed to RINs
- MKM Partners Raises Price Target on Hartford Financial (HIG) to $55
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS View, Hot Upgrades, Upgrades
Related EntitiesGoldman Sachs
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!