UPDATE: Oppenheimer Upgrades L Brands (LB) to Outperform

(Updated - August 19, 2016 9:21 AM EDT)

Oppenheimer upgraded L Brands (NYSE: LB) from Perform to Outperform with a price target of $90.00 (from $75.00). Analyst Anna Andreeva sees opportunity in the company's current transition, and she thinks its multiple will revert closer to historical levels.

"With the 'transition year' (exit of swim & lounge/promotional changes at VS) still early on, top line is coming in better than plan with earnings having cushions (SG&A, buyback). Historically LB trades at a 4-6x premium to the mall-based specialty universe given moat-like nature of its business and strong focus on shareholder returns; multiple contracted this year (2-3x premium currently). While elimination of couponing/category exit represent greater headwind in 2H16/1H17, company is offsetting the drag thus far, with earnings finding higher base in '16 and growth set to resume next year. Shares are up off recent lows but still down 20% YTD (group up 9%) presenting opportunity to own a staple name in retail, in our view," said Andreeva.

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 $77.87 yesterday.

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