L Brands (LB) Reports a Solid October Comp Beat Ahead of Analyst Day; Mizuho Securities Reiterates Buy

Mizuho Securities reiterated a Buy rating and $100.00 price target on L Brands (NYSE: LB) following the company's October comp beat. LB reported October comps of +5% vs. +6% LY, ahead of consensus’ +4%. In the face of solid October comps, the company raised 3Q EPS guidance to $0.51-$0.53. This is above consensus estimate of $0.46 and prior guidance of $0.40-$0.45 as comps accelerated sequentially on a two-year stack by ~5 pt from 2Q to 3Q with strength at both brands.

Analyst Betty Chen commented, "LB reported October comps of +5% vs. +6% LY, above our 3-5% estimate and slightly ahead of consensus’ +4%. By brand, comps were +5% at VSS and +7% at VS Direct. BBW delivered a +5% comp vs. +5% LY. Our checks suggest inventory remains clean and in-line with plans to end the quarter +LSD-MSD psf."

The company is hosting an analyst day on Tuesday 11/3/15 at HQ in Columbus, OH.

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 $96.45 yesterday.

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