Mizuho Securities Reiterates Buy on L Brands (LB) Following September Comp Report
- Donald Trump Sworn in as 45th U.S. President
- Wall Street ends higher as Trump becomes president
- Walgreens Boots Alliance (WBA) Said to Face Antitrust Concern for Rite Aid (RAD) Fix - Bloomberg
- Bristol-Myers Squibb (BMY) Says It Won't Pursue Accelerated U.S. Regulatory Pathway for Opdivo Plus Yervoy in Lung Cancer
- Apple (AAPL) Sues Qualcomm (QCOM) Over Patent Royalties in Antitrust Case - Bloomberg
Get access to the best calls on Wall Street with StreetInsider.com's Ratings Insider Elite. Get your Free Trial here.
Mizuho Securities reiterated a Buy rating and $85.00 price target on L Brands (NYSE: LB) following the company's September comp report. LB reported Sept comps of +3% vs. +9% LY, above consensus’ 0%. Inventory was clean exiting the month, up +2% psf, and in-line with guidance for +L-MSD at 3Q-end.
Analyst Betty Chen commented, "We reiterate our Buy rating on shares of LB as the September comp beat with sequential acceleration at both brands should provide investors with further comfort around 3Q and FY16 guidance. Importantly, while merchandise margins remain under pressure in the near-term, we note LB’s strategy to skew the assortment toward higher-margin growth categories appears to be making progress, evident by the +2% comp in go-forward categories. With management’s track record of strong opex control, we believe ~17x FY17 P/E remains a highly attractive entry point."
Shares of L Brands closed at $70.52 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- L Brands (LB): Pricing and Margins Continue To Fall - Jefferies
- JPMorgan Downgrades Endo International plc (ENDP) to Neutral
- M&T Bank (MTB) PT Raised to $165 at FBR Capital Following 4Q Beat
Create E-mail Alert Related CategoriesAnalyst Comments
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!