Mizuho Securities downgraded L Brands (NYSE: LB) from Buy to Neutral with a price target of $70.00 following Q3 miss and multiple contraction.

Analyst Betty Chen commented, "We are downgrading LB to Neutral and lowering our PT to $70 after a 3Q EPS miss that demonstrates the severity of challenges facing VS. Although October comps were in-line, we believe lower merchandise margins led to 3Q EPS guide 13% below Street, placing FY16/FY17 consensus at risk. We now believe VS’ Beauty repositioning and coupon reductions could take longer than expected and have cut our 2H16/FY17 forecasts. We hope management can provide assurance at its Analyst Day, but with cloudier outlook and questions on execution, we expect multiple contraction to the 16-18x range."

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Shares of L Brands closed at $72.19 yesterday.