Wedbush Starts L Brands (LB) at Neutral

Wedbush initiates coverage on L Brands (NYSE: LB) with a Neutral rating and a price target of $87.00.

Analyst Morry Brown commented, "Our rating reflects a positive bias towards the company's fundamental positioning, as we believe its two primary concepts are dominant brands unencumbered by the secular challenges facing the majority of US-based specialty retailers. Management's track record across all key measurables (operational execution, capital efficiency and shareholder-friendly initiatives), is as strong as any in retail post-2008. That said, the company screens at peak valuation across all absolute and relative metrics. While we believe the valuation has been (rightly) re-rated to reflect a global growth premium and is sustainable at/near current levels, we see limited room for additional expansion. Further share price appreciation is likely to hinge on earnings growth above current estimates (with some degree of EPS upside likely baked in already). We wait for a more attractive entry point for this best-in-class retailer."

For an analyst ratings summary and ratings history on L Brands click here. For more ratings news on L Brands click here.

Shares of L Brands closed at $84.93 yesterday.

You May Also Be Interested In

• Alphabet stock surges 11% to record high on Q1 earnings beat, first-ever dividend
• MarineMax (HZO) PT Lowered to $35 at Stifel
• Intel slides in afterhours trading as Q1 revenue misses, Q2 outlook falls short