L Brands Gets a Buy Rating from FBR Capital

By Ryan Adsit

In a report released today, Susan Anderson from FBR Capital reiterated a Buy rating on L Brands (NYSE: LB), with a price target of $60. The company’s shares opened today at $50.62.

Anderson wrote:

“For LB’s May SSS, we estimate –8.5% versus the –7.9% consensus and guidance of –MSD to –HSD (includes –10% impact from exited categories), and versus flat LY . We see the following dominant May themes: (1) exit of apparel/swim pressure (~–10% impact and May is highest volume impact versus March/April), (2) decent mall traffic, (3) cycling of coupon/catalog promotions, and (4) continued lower-ticket bralette/sport mix shift impact. We expect LB’s merch margin to be better versus April, as LB pulls back on bralette/sport promos and likely did not have to heavily rely as much on promos to drive traffic (see promo comparison chart in body of note). We like the improvement in merch margin over the past few months, potentially improving SSS, and potential as we begin to cycle the swim/apparel exit and bralette ramp (cycle ~July/August).”

According to TipRanks.com, Anderson is a 1-star analyst with an average return of -1.1% and a 44.8% success rate. Anderson covers the Services sector, focusing on stocks such as Ascena Retail Group, Abercrombie Fitch, and ClubCorp Holdings.

Currently, the analyst consensus on L Brands is Hold and the average price target is $51.44, representing a 1.6% upside.

In a report issued on May 18, Oppenheimer also reiterated a Buy rating on the stock with a $62 price target.

The company has a one year high of $79.67 and a one year low of $43.04. Currently, L Brands has an average volume of 4.27M.

Based on the recent corporate insider activity of 30 insiders, corporate insider sentiment is negative on the stock. Last month, Leslie Wexner, the Chairman & CEO of LB bought 1,401,623 shares for a total of $26,604,021.

TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.

L Brands, Inc. engages in the retail business. It is focused on women’s intimate and other apparel, personal care and beauty categories. It operates its business through Victorias Secret and Bath & Body Works International segment. Its brands include Victorias Secret, Bath and Body Works, Pink, La Senza, and Henri Bendel. The company was founded by Leslie Herbert Wexner in 1963 and is headquartered in Columbus, OH.