Goldman Sachs Sees 21% Upside in L Brands (LB) and Raises Rating to 'Buy'
Get Alerts LB Hot Sheet
Rating Summary:
17 Buy, 21 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 10 | New: 14
Join SI Premium – FREE
(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.
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 $77.76 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Citi Upgrades United Microelectronics Corp (2303:TT) (UMC) to Buy 'with limited downside'
- Mizuho Upgrades Airbnb Inc. (ABNB) to Buy, 'We see opportunities'
- BofA Securities Upgrades Tesla (TSLA) to Buy on wind up of positive catalysts
Create E-mail Alert Related Categories
Analyst Comments, Analyst EPS View, Hot Upgrades, UpgradesRelated Entities
Goldman SachsSign 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!