Nomura Securities Reiterates a 'Buy/Top Pick' on Limited Brands (LTD); Looking Attractive After Recent Weakness
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Price: $65.09 -0.57%
Rating Summary:
6 Buy, 13 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
6 Buy, 13 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Nomura Securities reiterates a 'Buy' on Limited Brands (NYSE: LTD).
Nomura analyst, Paul Lejuez, said, "LTD missed in May, with comps +6% vs. our est +9-11% and cons +8%. In the context of most retailers falling short of expectations in May, LTD’s +6% comp was one of the strongest out there, similar to recent quarters. Taking a step back, LTD's continued sales outperformance and strong positioning for 2H11 is the real story. We are reducing our 2QE by $0.01, to $0.47 vs. cons $0.43, based primarily on lower comp expectations. We now model 2Q comps +5-7% vs. our previous estimate +8-10%. We feel better about merchandise margins coming out of May. Our F11 is now $2.62 (prev $2.63). We reiterate our rating and status as our top pick: with yesterday’s weakness, we believe that the stock looks even more attractive, trading at 12.4x our F12E vs. the group at 15.9x."
For more ratings news on Limited Brands click here and for the rating history of Limited Brands click here.
Shares of Limited Brands closed at $37.87 yesterday.
Nomura analyst, Paul Lejuez, said, "LTD missed in May, with comps +6% vs. our est +9-11% and cons +8%. In the context of most retailers falling short of expectations in May, LTD’s +6% comp was one of the strongest out there, similar to recent quarters. Taking a step back, LTD's continued sales outperformance and strong positioning for 2H11 is the real story. We are reducing our 2QE by $0.01, to $0.47 vs. cons $0.43, based primarily on lower comp expectations. We now model 2Q comps +5-7% vs. our previous estimate +8-10%. We feel better about merchandise margins coming out of May. Our F11 is now $2.62 (prev $2.63). We reiterate our rating and status as our top pick: with yesterday’s weakness, we believe that the stock looks even more attractive, trading at 12.4x our F12E vs. the group at 15.9x."
For more ratings news on Limited Brands click here and for the rating history of Limited Brands click here.
Shares of Limited Brands closed at $37.87 yesterday.
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