UPDATE: Credit Suisse Raises PT to $45 on Limited Brands
Credit Suisse raises its price target on Neutral-rated Limited Brands (NYSE: LTD) to $45, up $1, on productivity enhancements and 2012 focus on returning cash to shareholders.
Credit Suisse says, "Transitioning Square Footage To Higher Productivity Locations In Domestic Victoria's Secret Business Could Benefit EPS by $0.04. We note that Victoria's Secret will be closing 22 doors in the US in 2012, replacing them with 23 doors in higherproductivity malls and locations. ...: In FY11 LTD returned over $2.3bn cash to shareholders, representing a 17% yield. Following the recent debt raise, we expect to see $650M-plus in share repurchase activity in FY12, suggesting a 5% repurchase yield."
LTD closed at $45.48 a share on Thursday.
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Tags: Credit Suisse