Weekly Analysts’ Ratings Changes for L Brands (LB)

A number of firms have modified their ratings and price targets on shares of L Brands (NYSE: LB) recently:

  • 9/7/2018 – L Brands had its price target lowered by analysts at Nomura from $31.00 to $30.00. They now have a “neutral” rating on the stock.
  • 8/31/2018 – L Brands was downgraded by analysts at Zacks Investment Research from a “hold” rating to a “sell” rating. According to Zacks, “Shares of L Brands have declined and underperformed the industry in the past six months. Apart from stiff competition and heavy discounts, the company has been reeling under consumers’ changing preferences that continues to impact its Victoria’s Secret lingerie brand in the second quarter of fiscal 2018 as well. Moreover, softness in the Pink brand has added to woes. Shrinking gross margin also raises concern. These compelled management to trim fiscal 2018 view for the second time. As a result, estimates have been moving down. However, L Brands’ third straight quarter of positive earnings surprise came as a sign of some relief. Meanwhile, revenues came in line with the Zacks Consensus Estimate. Additionally, recent comps scenario suggests an improvement in the third quarter and fiscal 2018. Further, L Brands’ focus on international markets is likely to provide growth opportunities and generate increased sales volumes.”
  • 8/24/2018 – L Brands had its price target lowered by analysts at KeyCorp from $28.00 to $25.00. They now have an “underweight” rating on the stock.
  • 8/24/2018 – L Brands had its price target lowered by analysts at Telsey Advisory Group from $36.00 to $31.00. They now have a “market perform” rating on the stock.
  • 8/24/2018 – L Brands had its “equal weight” rating reaffirmed by analysts at Morgan Stanley. They now have a $32.00 price target on the stock, down previously from $56.00.
  • 8/24/2018 – L Brands had its price target lowered by analysts at Citigroup Inc from $38.00 to $37.00. They now have a “buy” rating on the stock.
  • 8/23/2018 – L Brands had its price target lowered by analysts at Bank of America Corp from $29.00 to $26.00. They now have an “underperform” rating on the stock.
  • 8/23/2018 – L Brands was given a new $25.00 price target on by analysts at Loop Capital. They now have a “sell” rating on the stock.
  • 8/23/2018 – L Brands had its “sell” rating reaffirmed by analysts at Jefferies Financial Group Inc.
  • 8/23/2018 – L Brands had its price target lowered by analysts at Robert W. Baird from $45.00 to $40.00. They now have an “outperform” rating on the stock.
  • 8/23/2018 – L Brands had its price target lowered by analysts at Credit Suisse Group AG from $35.00 to $31.00. They now have a “neutral” rating on the stock.
  • 8/23/2018 – L Brands had its price target lowered by analysts at UBS Group AG from $32.00 to $31.00. They now have a “neutral” rating on the stock.
  • 8/23/2018 – L Brands had its price target lowered by analysts at JPMorgan Chase & Co. to $26.00. They now have a “neutral” rating on the stock.
  • 8/23/2018 – L Brands had its price target lowered by analysts at Barclays PLC from $33.00 to $30.00. They now have a “hold” rating on the stock.
  • 8/23/2018 – L Brands was given a new $30.00 price target on by analysts at Wells Fargo & Co. They now have a “hold” rating on the stock.
  • 8/23/2018 – L Brands was downgraded by analysts at Morgan Stanley from an “overweight” rating to an “equal weight” rating. They now have a $32.00 price target on the stock, down previously from $56.00.
  • 8/23/2018 – L Brands had its price target lowered by analysts at B. Riley from $49.00 to $44.00. They now have a “buy” rating on the stock.
  • 8/22/2018 – L Brands had its “hold” rating reaffirmed by analysts at Guggenheim.
  • 8/21/2018 – L Brands was given a new $35.00 price target on by analysts at Royal Bank of Canada. They now have a “buy” rating on the stock.
  • 8/10/2018 – L Brands had its price target lowered by analysts at JPMorgan Chase & Co. from $31.00 to $28.00. They now have a “neutral” rating on the stock.
  • 8/10/2018 – L Brands is now covered by analysts at Wedbush. They set a “neutral” rating and a $33.00 price target on the stock.
  • 8/9/2018 – L Brands was given a new $27.00 price target on by analysts at Loop Capital. They now have a “sell” rating on the stock.
  • 8/7/2018 – L Brands was downgraded by analysts at Zacks Investment Research from a “hold” rating to a “sell” rating. According to Zacks, “Shares of L Brands have declined and underperformed the industry in the past six months. The stock came under pressure after management trimmed the fiscal 2018 view and provided dismal second-quarter guidance. Moreover, southward revision in earnings estimates for second quarter and 2018 exhibits analysts’ concerns surrounding the company’s future growth potential. Shrinking gross margin also remains a concern. The company had forecasted gross margin to contract in the second quarter. Nevertheless, L Brands’ efforts to streamline Victoria’s Secret business, localizing assortments and enhancing direct business bode well. The company’s foray into international markets is likely to provide growth opportunities and generate increased sales volumes. L Brands’ sustained focus on cost containment, inventory management, merchandise and speed-to-market initiatives has kept it afloat in a competitive environment.”
  • 8/7/2018 – L Brands was given a new $29.00 price target on by analysts at Piper Jaffray Companies. They now have a “hold” rating on the stock.
  • 7/17/2018 – L Brands was upgraded by analysts at Zacks Investment Research from a “sell” rating to a “hold” rating. According to Zacks, “Shares of L Brands have declined and underperformed the industry in the past six months. The stock came under pressure after management trimmed the fiscal 2018 view and provided dismal second-quarter guidance. Moreover, southward revision in earnings estimates for second quarter and 2018 exhibits analysts’ concerns surrounding the company’s future growth potential. Shrinking gross margin also remains a concern. The company had forecasted gross margin to contract in the second quarter. Nevertheless, L Brands’ efforts to streamline Victoria’s Secret business, localizing assortments and enhancing direct business bode well. The company’s foray into international markets is likely to provide growth opportunities and generate increased sales volumes. L Brands’ sustained focus on cost containment, inventory management, merchandise and speed-to-market initiatives has kept it afloat in a competitive environment.”

Shares of LB stock opened at $27.44 on Friday. The firm has a market capitalization of $7.75 billion, a price-to-earnings ratio of 8.58, a price-to-earnings-growth ratio of 0.98 and a beta of 0.56. L Brands Inc has a fifty-two week low of $25.89 and a fifty-two week high of $63.10. The company has a debt-to-equity ratio of -5.09, a quick ratio of 0.83 and a current ratio of 1.46.

L Brands (NYSE:LB) last issued its earnings results on Wednesday, August 22nd. The specialty retailer reported $0.36 earnings per share for the quarter, beating the Zacks’ consensus estimate of $0.34 by $0.02. The firm had revenue of $2.98 billion for the quarter, compared to the consensus estimate of $2.92 billion. L Brands had a negative return on equity of 84.14% and a net margin of 6.87%. The company’s revenue was up 8.3% compared to the same quarter last year. During the same quarter last year, the business posted $0.48 EPS. analysts forecast that L Brands Inc will post 2.51 earnings per share for the current year.

The firm also recently announced a quarterly dividend, which was paid on Friday, September 7th. Shareholders of record on Friday, August 24th were issued a $0.60 dividend. This represents a $2.40 dividend on an annualized basis and a dividend yield of 8.75%. The ex-dividend date of this dividend was Thursday, August 23rd. L Brands’s dividend payout ratio is presently 75.00%.

Several hedge funds have recently modified their holdings of LB. Fjarde AP Fonden Fourth Swedish National Pension Fund boosted its holdings in shares of L Brands by 2.7% in the 1st quarter. Fjarde AP Fonden Fourth Swedish National Pension Fund now owns 70,793 shares of the specialty retailer’s stock valued at $2,705,000 after purchasing an additional 1,856 shares in the last quarter. Robeco Institutional Asset Management B.V. boosted its holdings in shares of L Brands by 71.5% in the 1st quarter. Robeco Institutional Asset Management B.V. now owns 358,113 shares of the specialty retailer’s stock valued at $13,686,000 after purchasing an additional 149,249 shares in the last quarter. Eaton Vance Management boosted its holdings in shares of L Brands by 110.8% in the 1st quarter. Eaton Vance Management now owns 218,452 shares of the specialty retailer’s stock valued at $8,347,000 after purchasing an additional 114,826 shares in the last quarter. Schwab Charles Investment Management Inc. boosted its holdings in shares of L Brands by 0.7% during the 1st quarter. Schwab Charles Investment Management Inc. now owns 960,346 shares of the specialty retailer’s stock valued at $36,695,000 after acquiring an additional 6,689 shares in the last quarter. Finally, Pendal Group Ltd boosted its holdings in shares of L Brands by 44.2% during the 1st quarter. Pendal Group Ltd now owns 26,103 shares of the specialty retailer’s stock valued at $997,000 after acquiring an additional 8,002 shares in the last quarter. 72.86% of the stock is currently owned by hedge funds and other institutional investors.

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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