Guggenheim Sticks to Its Hold Rating for L Brands

By Carrie Williams

Guggenheim analyst Robert Drbul maintained a Hold rating on L Brands (NYSE: LB) today. The company’s shares opened today at $37.48, close to its 52-week low of $35.

Drbul wrote:

“We remain NEUTRAL rated. In March, total company comp sales increased 4%, or +2% excluding a 2% point benefit from an earlier Easter, ~in line with our +LSD expectations. The LB total comp increase of 4% (stores flat) included a 1% increase at Victoria’s Secret (stores -3%) and a 10% increase at Bath & Body Works (stores +9%). The company expects April comp sales results will be negatively impacted by 2-3% points from the Easter timing shift. For the total company, March sales increased 7% to $1.02bn. VS total comps increased 1% in March (stores -3%), decelerating m-o-m (+2% in Feb) despite benefits from an earlier Easter. VS comp growth was attributed to solid trends in Beauty and modest growth in Lingerie, partially offset by a decline in PINK (which was flat in February and grew slightly in 4Q).”

According to TipRanks.com, Drbul is a 5-star analyst with an average return of 14.7% and a 77.8% success rate. Drbul covers the Services sector, focusing on stocks such as National Vision Holdings Inc, Lululemon Athletica Inc, and Ascena Retail Group.

L Brands has an analyst consensus of Hold, with a price target consensus of $46.46.

L Brands’ market cap is currently $10.61B and has a P/E ratio of 11.02. The company has a book value ratio of -14.0967.

Based on the recent corporate insider activity of 27 insiders, corporate insider sentiment is negative on the stock.

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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 the following segments: Victorias Secret, Bath & Body Works, and Victoria’s Secret and Bath & Body Works International.