L Brands (LB) Earns Hold Rating from Guggenheim

L Brands (NYSE:LB)‘s stock had its “hold” rating restated by Guggenheim in a report issued on Thursday.

The analysts 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).””

Several other analysts also recently issued reports on LB. Morgan Stanley reissued an “overweight” rating and issued a $70.00 price target on shares of L Brands in a research report on Thursday, December 14th. BMO Capital Markets set a $56.00 price objective on shares of L Brands and gave the stock a “hold” rating in a report on Tuesday, December 19th. Robert W. Baird reaffirmed a “hold” rating and set a $60.00 price objective on shares of L Brands in a report on Friday, December 22nd. Telsey Advisory Group lifted their price objective on shares of L Brands from $64.00 to $70.00 and gave the stock an “outperform” rating in a report on Tuesday, January 2nd. Finally, Wells Fargo set a $48.00 price objective on shares of L Brands and gave the stock a “hold” rating in a report on Thursday, January 4th. Seven investment analysts have rated the stock with a sell rating, eighteen have assigned a hold rating and eleven have issued a buy rating to the company’s stock. L Brands has an average rating of “Hold” and an average price target of $49.37.



NYSE LB opened at $36.18 on Thursday. L Brands has a 12-month low of $35.00 and a 12-month high of $63.10. The company has a debt-to-equity ratio of -7.60, a current ratio of 1.62 and a quick ratio of 1.01. The firm has a market capitalization of $10,700.67, a P/E ratio of 11.31, a price-to-earnings-growth ratio of 1.04 and a beta of 0.78.

L Brands (NYSE:LB) last posted its quarterly earnings results on Wednesday, February 28th. The specialty retailer reported $2.11 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.05 by $0.06. L Brands had a net margin of 7.78% and a negative return on equity of 101.69%. The business had revenue of $4.82 billion during the quarter, compared to the consensus estimate of $4.72 billion. During the same quarter last year, the firm posted $2.03 EPS. L Brands’s revenue was up 7.4% compared to the same quarter last year. sell-side analysts expect that L Brands will post 3.17 earnings per share for the current year.

L Brands announced that its Board of Directors has initiated a share buyback plan on Thursday, March 8th that permits the company to repurchase $226.90 million in outstanding shares. This repurchase authorization permits the specialty retailer to repurchase shares of its stock through open market purchases. Stock repurchase plans are generally a sign that the company’s board believes its stock is undervalued.

In related news, CFO Stuart B. Burgdoerfer sold 17,000 shares of the business’s stock in a transaction dated Wednesday, March 21st. The stock was sold at an average price of $39.56, for a total value of $672,520.00. Following the sale, the chief financial officer now directly owns 52,640 shares in the company, valued at approximately $2,082,438.40. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, CFO Stuart B. Burgdoerfer sold 33,000 shares of the business’s stock in a transaction dated Tuesday, March 13th. The shares were sold at an average price of $42.53, for a total value of $1,403,490.00. Following the completion of the sale, the chief financial officer now owns 69,640 shares in the company, valued at $2,961,789.20. The disclosure for this sale can be found here. Insiders own 16.68% of the company’s stock.

A number of institutional investors have recently made changes to their positions in the stock. American International Group Inc. raised its stake in L Brands by 74.8% in the 4th quarter. American International Group Inc. now owns 10,436,938 shares of the specialty retailer’s stock valued at $628,512,000 after acquiring an additional 4,466,237 shares during the period. Barrow Hanley Mewhinney & Strauss LLC increased its position in shares of L Brands by 29.0% during the third quarter. Barrow Hanley Mewhinney & Strauss LLC now owns 4,156,510 shares of the specialty retailer’s stock valued at $172,952,000 after buying an additional 935,259 shares during the period. Bank of New York Mellon Corp increased its position in shares of L Brands by 1.5% during the fourth quarter. Bank of New York Mellon Corp now owns 2,638,420 shares of the specialty retailer’s stock valued at $158,886,000 after buying an additional 40,263 shares during the period. Geode Capital Management LLC increased its position in shares of L Brands by 2.7% during the fourth quarter. Geode Capital Management LLC now owns 2,618,820 shares of the specialty retailer’s stock valued at $157,378,000 after buying an additional 68,751 shares during the period. Finally, Amundi Pioneer Asset Management Inc. bought a new stake in shares of L Brands during the fourth quarter valued at about $120,549,000. Institutional investors and hedge funds own 81.06% of the company’s stock.

WARNING: “L Brands (LB) Earns Hold Rating from Guggenheim” was originally published by Dakota Financial News and is the property of of Dakota Financial News. If you are reading this report on another website, it was stolen and republished in violation of U.S. & international trademark & copyright law. The legal version of this report can be accessed at https://dakotafinancialnews.com/2018/04/14/l-brands-lb-earns-hold-rating-from-guggenheim.html.

About L Brands

L Brands, Inc operates as a specialty retailer of women's intimate and other apparel, beauty and personal care products, and accessories. The company operates in three segments: Victoria's Secret, Bath & Body Works, and Victoria's Secret and Bath & Body Works International. Its products include loungewear, bras, panties, swimwear, athletic attire, fragrances, shower gels and lotions, aromatherapy, soaps and sanitizers, home fragrances, handbags, jewelry, and personal care accessories.

Analyst Recommendations for L Brands (NYSE:LB)

Receive News & Ratings for L Brands Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for L Brands and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply