L Brands Inc (LB) Trying to Recover from Downgrade, Poor Guidance

Posted February 27, 2017

Finally, Wells Fargo & Co reiterated a "hold" rating on shares of L Brands in a report on Thursday. Citigroup Inc. upgraded shares of L Brands from a neutral rating to a buy rating and increased their price target for the stock from $74.00 to $84.00 in a research note on Monday, November 14th.

L Brands, Inc. (NYSE:LB) - Equities research analysts at Jefferies Group issued their Q1 2018 earnings per share (EPS) estimates for shares of L Brands in a research note issued on Thursday. Vetr cut shares of L Brands from a "strong-buy" rating to a "buy" rating and set a $68.74 price target on the stock.in a research note on Wednesday, January 18th.

Telsey Advisory Group gave the share price of L Brands Inc a price target of 60 meaning the broker expects a potential upside of 22.6% from L Brands Inc's current market price of 48.94. Four equities research analysts have rated the stock with a sell rating, twelve have given a hold rating and seven have assigned a buy rating to the company. L Brands has an average rating of "Hold" and a consensus target price of $72.98. The figure topped the $1.90 per share that analysts polled by Thomson Reuters were projecting. The company has a 50 day moving average price of $59.18 and a 200 day moving average price of $68.49. L Brands has a 12-month low of $47.93 and a 12-month high of $88.77. The Stock now has the market capitalization of $13.99 Billion, P/E (price to earnings ttm) of 12.4 and Weekly volatility of 3.15% and monthly volatility of 2.66% respectively.

L Brands (NYSE:LB) last issued its quarterly earnings data on Wednesday, November 16th. The firm earned $4.49 billion during the quarter, compared to analysts' expectations of $4.51 billion.

L Brands reported that Q4 operating income decreased 8% to $987.6 million over the year-ago period, and net income was $631.7 million, down from $636 million last year.

However, revenue was slightly underwhelming as L Brands raked in $4.49 billion over the course of its holiday period. The company's quarterly revenue was up 4.0% compared to the same quarter a year ago. For the year, earnings will be between $3.05 and $3.35 per share, which is weaker than the analyst projection of $3.75.

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The business also recently declared a quarterly dividend, which will be paid on Friday, March 3rd. The ex-dividend date of this dividend is Wednesday, February 15th. This represents a $2.40 dividend on an annualized basis and a dividend yield of 4.71%. Dunkin' Brands Group's dividend payout ratio (DPR) is now 85.11%.

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Over the last twelve months shares in L Brands Inc have decreased by -39.01% from 80.24 to 48.94. Three Peaks Capital Management LLC raised its stake in shares of L Brands by 3.3% in the third quarter. The fund purchased 135,000 shares of the company's stock, valued at approximately $7,031,000. DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main purchased a new position in shares of L Brands during the fourth quarter worth approximately $115,157,000. Thrivent Financial for Lutherans now owns 85,287 shares of the company's stock valued at $5,616,000 after buying an additional 7,800 shares in the last quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS raised its stake in shares of L Brands by 0.4% in the fourth quarter. NN Investment Partners Holdings N.V. now owns 823,870 shares of the company's stock worth $54,244,000 after buying an additional 822,387 shares during the last quarter. BlackRock Japan Co. Ltd raised its stake in shares of L Brands by 1.0% in the third quarter. CAM Group Holding A S now owns 3,669,206 shares of the company's stock valued at $246,314,000 after buying an additional 89,166 shares in the last quarter.

Other hedge funds and other institutional investors also recently bought and sold shares of the company.

L Brands is preparing for steep losses in the near-future, specifically across its Victoria's Secret brand.

Despite a fragile outlook, L Brands said it is focused on its investment in China, as well as in real estate for Victoria's Secret and Bath & Body Works.