KeyBanc Upgrades L Brands To Overweight On Possible Value Creating Transaction

Image result for L Brands

KeyBanc analyst Edward Yruma upgraded L Brands (LB) to Overweight from Sector Weight with a $25 price target.

The shares closed Friday down 14c to $20.16.

The "stark differential" in performance between Victoria's Secret and Bath & Body Works, and lack of any discernable turnaround at Victoria's Secret, makes a value-creating transaction more likely, Yruma tells investors in a research note partially titled "The Worse Comps Get, the Better the Stock." Efforts to unlock value at Bath & Body are now more likely, contends the analyst. He believes a standalone Bath & Body Works business "should be a highly attractive asset."

Further, the analyst still sees value in Victoria's Secret even though a potential turnaround could take time. Yruma thinks a sale of the Victoria's Secret business could approximate $4 to $6 per share in value.
 

Disclaimer: TheFly's news is intended for informational purposes only and does not claim to be actionable for investment decisions. Read more at  more

How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.