L Brands (LB) Stock Rating Lowered by Zacks Investment Research

Zacks Investment Research downgraded shares of L Brands (NYSE:LB) from a hold rating to a sell rating in a research report report published on Monday morning, Zacks.com reports.

According to Zacks, “L Brands has lagged the industry in a year, which can be attributable to sluggishness at the Victoria’s Secret brand, stemming from stiff competition and consumers’ changing preferences. The dismal trend lingered in fourth-quarter fiscal 2018, wherein Victoria’s Secret sales dropped 5% to $2,532 million, with PINK remaining a drag. Also, L Brands continued to battle softness in gross margin that contracted 170 basis points due to lower merchandise margin rate and higher occupancy costs. Management expects gross margin to decrease and SG&A costs to rise year over year in fiscal 2019. Further, net sales are expected to be hit by La Senza’s sale and closure of Henri Bendel business. Nonetheless, these moves will help the company increase focus on areas with higher growth potential. Also, strength in BBW brand should offer some respite to the company that flaunts an impressive earnings surprise history.”

A number of other brokerages also recently commented on LB. DA Davidson lowered their target price on L Brands to $26.00 and set a neutral rating on the stock in a research note on Friday, March 1st. MKM Partners lowered their target price on L Brands from $29.00 to $26.00 and set a neutral rating on the stock in a research note on Thursday, February 28th. UBS Group upped their target price on L Brands from $26.00 to $28.00 and gave the stock a neutral rating in a research note on Wednesday, April 10th. B. Riley lowered their target price on L Brands from $44.00 to $41.00 and set a buy rating on the stock in a research note on Thursday, February 21st. Finally, Jefferies Financial Group lowered their target price on L Brands from $21.00 to $16.00 in a research note on Thursday, February 28th. Four analysts have rated the stock with a sell rating, fifteen have issued a hold rating and ten have given a buy rating to the company. L Brands currently has an average rating of Hold and a consensus target price of $33.35.



Shares of LB opened at $22.46 on Monday. L Brands has a 52 week low of $21.82 and a 52 week high of $38.14. The stock has a market capitalization of $6.13 billion, a PE ratio of 7.96, a P/E/G ratio of 0.86 and a beta of 0.51.

L Brands (NYSE:LB) last issued its earnings results on Wednesday, February 27th. The specialty retailer reported $2.14 EPS for the quarter, topping analysts’ consensus estimates of $2.06 by $0.08. L Brands had a negative return on equity of 73.73% and a net margin of 4.86%. The firm had revenue of $4.85 billion for the quarter, compared to the consensus estimate of $4.90 billion. During the same quarter in the prior year, the business earned $2.11 earnings per share. The company’s revenue was up .6% compared to the same quarter last year. As a group, research analysts expect that L Brands will post 2.36 EPS for the current fiscal year.

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Kwmg LLC raised its holdings in shares of L Brands by 6.2% during the fourth quarter. Kwmg LLC now owns 74,293 shares of the specialty retailer’s stock valued at $1,907,000 after acquiring an additional 4,309 shares during the last quarter. Susquehanna Fundamental Investments LLC raised its holdings in shares of L Brands by 245.1% during the fourth quarter. Susquehanna Fundamental Investments LLC now owns 195,300 shares of the specialty retailer’s stock valued at $5,013,000 after acquiring an additional 138,702 shares during the last quarter. American International Group Inc. raised its holdings in shares of L Brands by 25.4% during the fourth quarter. American International Group Inc. now owns 12,224,858 shares of the specialty retailer’s stock valued at $313,812,000 after acquiring an additional 2,472,416 shares during the last quarter. Exane Derivatives raised its holdings in shares of L Brands by 11.5% during the first quarter. Exane Derivatives now owns 139,415 shares of the specialty retailer’s stock valued at $3,844,000 after acquiring an additional 14,350 shares during the last quarter. Finally, CSat Investment Advisory L.P. raised its holdings in shares of L Brands by 31.8% during the fourth quarter. CSat Investment Advisory L.P. now owns 42,531 shares of the specialty retailer’s stock valued at $1,092,000 after acquiring an additional 10,271 shares during the last quarter. 71.24% of the stock is owned by institutional investors.

L Brands Company Profile

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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