Nomura Securities Maintains a 'Buy' on Limited Brands (LTD); Was Guidance Disappointing or Conservative?
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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: 7 | Down: 12 | New: 19
Rating Summary:
6 Buy, 13 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 7 | Down: 12 | New: 19
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Nomura Securities maintains a 'Buy' on Limited Brands (NYSE: LTD) price target of $50.00.
Analyst, Paul Lejuez, said, "While mgmt provided guidance that was initially disappointing, it does not reflect the strong trends in the core VSS and BBW businesses. Part of this is mgmt’s typical conservatism (we believe it is conservative with their comp, tax rate, and share repo assumptions), while other factors (one-time charges, increased interest expense, drag from sale of Mast) also had a negative effect on guidance. We are reducing our F12E from $3.04 to $2.96, primarily to reflect interest expense from the company’s recent $1bn bond deal. We assume $1.1bn in share repo vs guidance of $650mn. We assume F12 comps +3-4% (and we believe there is upside potential). We are introducing our F13E EPS of $3.37. We continue to believe LTD is well-positioned for F12, and believe there is some upside to guidance/consensus."
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 $46.01 yesterday.
Analyst, Paul Lejuez, said, "While mgmt provided guidance that was initially disappointing, it does not reflect the strong trends in the core VSS and BBW businesses. Part of this is mgmt’s typical conservatism (we believe it is conservative with their comp, tax rate, and share repo assumptions), while other factors (one-time charges, increased interest expense, drag from sale of Mast) also had a negative effect on guidance. We are reducing our F12E from $3.04 to $2.96, primarily to reflect interest expense from the company’s recent $1bn bond deal. We assume $1.1bn in share repo vs guidance of $650mn. We assume F12 comps +3-4% (and we believe there is upside potential). We are introducing our F13E EPS of $3.37. We continue to believe LTD is well-positioned for F12, and believe there is some upside to guidance/consensus."
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 $46.01 yesterday.
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