Nomura Securities Maintains a 'Buy' on Limited Brands (LTD); Q4 First Look
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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 maintains a 'Buy' on Limited Brands (NYSE: LTD) price target of $50.00.
Analyst, Paul Lejuez, said, "LTD reported 4Q EPS of $1.50 (ex-items) vs. our est of $1.48, cons of $1.46 and mgmt guidance of the high-end of its previous $1.42-$1.46 guidance range. LTD guided F12 EPS to $2.60-$2.80 vs cons of $2.91 and 1Q12 EPS to $0.35-$0.40 vs cons of $0.44. We believe the biggest difference vs cons is the interest-expense line. The company issued $1bn in 5.625% senior notes and now expects F12 interest expense to increase to $310mn (vs our forecast of $260mn). This will have a $0.11 drag in F12 that most did not account for. One upside opportunity is more share repo, which could add ~$0.07 to F12 EPS. Although guidance was disappointing, we believe there is significant EPS upside, and we still believe LTD is well positioned for F12. We expect mgmt to have a more bullish tone on its conf call than its guidance would imply."
For an analyst ratings summary and ratings history on Limited Brands click here. For more ratings news on Limited Brands click here.
Shares of Limited Brands closed at $45.48 yesterday.
Analyst, Paul Lejuez, said, "LTD reported 4Q EPS of $1.50 (ex-items) vs. our est of $1.48, cons of $1.46 and mgmt guidance of the high-end of its previous $1.42-$1.46 guidance range. LTD guided F12 EPS to $2.60-$2.80 vs cons of $2.91 and 1Q12 EPS to $0.35-$0.40 vs cons of $0.44. We believe the biggest difference vs cons is the interest-expense line. The company issued $1bn in 5.625% senior notes and now expects F12 interest expense to increase to $310mn (vs our forecast of $260mn). This will have a $0.11 drag in F12 that most did not account for. One upside opportunity is more share repo, which could add ~$0.07 to F12 EPS. Although guidance was disappointing, we believe there is significant EPS upside, and we still believe LTD is well positioned for F12. We expect mgmt to have a more bullish tone on its conf call than its guidance would imply."
For an analyst ratings summary and ratings history on Limited Brands click here. For more ratings news on Limited Brands click here.
Shares of Limited Brands closed at $45.48 yesterday.
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