L Brands (NYSE:LB)‘s stock had its “buy” rating reaffirmed by Zacks Investment Research in a research report issued on Tuesday. They presently have a $35.00 target price on the specialty retailer’s stock. Zacks Investment Research‘s target price would indicate a potential downside of 4.97% from the stock’s current price.
According to Zacks, “Shares of L Brands have outdid the industry in a month primarily on the back of impressive September comparable sales results and the announcement that management is exploring all possible alternatives for its La Senza business. The company has been struggling with soft performance of its luxury lingerie brand and offloading of the same will enable it to focus on core operations to augment revenue and profitability. Apart from stiff competition, L Brands has been reeling under consumers’ changing preferences and spending pattern that continue to impact the performance of these brands. Shrinking gross margin also raises concern. Nevertheless, estimates have been stable lately ahead of third-quarter fiscal 2018 release. Last reported quarter, marked the company’s third straight quarter of earnings beat. Further, L Brands’ focus on international markets is likely to provide growth opportunities and generate increased sales volumes.”
Other analysts have also issued research reports about the company. Royal Bank of Canada set a $35.00 price target on L Brands and gave the company a “buy” rating in a report on Tuesday, August 21st. B. Riley cut their price target on L Brands from $49.00 to $44.00 and set a “buy” rating for the company in a report on Thursday, August 23rd. Citigroup cut their price target on L Brands from $38.00 to $37.00 and set a “buy” rating for the company in a report on Friday, August 24th. Goldman Sachs Group initiated coverage on L Brands in a report on Thursday, October 25th. They set a “buy” rating and a $36.00 price target for the company. Finally, Morgan Stanley lowered L Brands from an “overweight” rating to an “equal weight” rating and cut their price target for the company from $56.00 to $32.00 in a report on Thursday, August 23rd. Three investment analysts have rated the stock with a sell rating, nineteen have issued a hold rating and eleven have assigned a buy rating to the stock. The company presently has a consensus rating of “Hold” and an average target price of $38.09.
L Brands (NYSE:LB) last issued its quarterly earnings data on Wednesday, August 22nd. The specialty retailer reported $0.36 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $0.34 by $0.02. L Brands had a negative return on equity of 84.14% and a net margin of 6.87%. The company had revenue of $2.98 billion during the quarter, compared to analyst estimates of $2.92 billion. During the same quarter in the previous year, the company posted $0.48 earnings per share. L Brands’s revenue was up 8.3% compared to the same quarter last year. On average, analysts forecast that L Brands will post 2.59 EPS for the current fiscal year.
Several large investors have recently bought and sold shares of the stock. Tyvor Capital LLC purchased a new stake in shares of L Brands in the third quarter worth about $29,779,000. Man Group plc raised its position in L Brands by 266.8% during the third quarter. Man Group plc now owns 219,687 shares of the specialty retailer’s stock valued at $6,657,000 after purchasing an additional 159,791 shares during the period. Veritable L.P. purchased a new stake in L Brands during the third quarter valued at approximately $379,000. Vident Investment Advisory LLC purchased a new stake in L Brands during the third quarter valued at approximately $255,000. Finally, Pacer Advisors Inc. raised its position in L Brands by 275.5% during the third quarter. Pacer Advisors Inc. now owns 42,760 shares of the specialty retailer’s stock valued at $1,296,000 after purchasing an additional 31,373 shares during the period. Institutional investors own 73.23% of the company’s stock.
About L Brands
L Brands, Inc operates as a specialty retailer of women's intimate and other apparel, beauty and personal care products, home fragrance products, and accessories. The company operates in three segments: Victoria's Secret, Bath & Body Works, and Victoria's Secret and Bath & Body Works International.
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