L Brands (LB) Gets a Hold Rating from Guggenheim

By Austin Angelo

Guggenheim analyst Robert Drbul maintained a Hold rating on L Brands (LBResearch Report) today. The company’s shares closed last Monday at $18.55, close to its 52-week low of $15.82.

Drbul observed:

“We continue to forecast +LSD% comp sales growth in this business through 2020, on top of difficult comparisons vs. the +HSD-DD% comp gains in recent quarters. On a two-year basis, we expect trends to remain quite healthy here. In International, the VS UK business has experienced significant erosion in the past 3 years, similar to the NA market but compounded by the challenges in the UK economy. In China, the company continues to see significant potential long term and has now entered 19 markets and prototyped 7 different formats. International is roughly 5% of total LB sales (our 2019E). Overall, the company is focused on getting on a path to profitability in International (both the UK and China), and we continue to forecast a modest operating income loss this year (similar to 2018).”

According to TipRanks.com, Drbul is a 5-star analyst with an average return of 8.3% and a 67.0% success rate. Drbul covers the Services sector, focusing on stocks such as National Vision Holdings Inc, Capri Holdings Limited, and Ascena Retail Group.

L Brands has an analyst consensus of Hold, with a price target consensus of $23.69.

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The company has a one-year high of $38 and a one-year low of $15.82. Currently, L Brands has an average volume of 5.44M.

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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.