UPDATE: Canaccord Genuity Raises PT to $51 on Limited Brands, Cites Fewer Promotions
Canaccord Genuity reiterated its Hold rating on Limited Brands (NYSE: LTD) and raised its price target from $49 to $51.
Canaccord Genuity noted, "Lower product costs, namely cotton, and greater full-price selling resulted in yr./yr. merchandise margin expansion. VS Direct SSS increased 2% on top of -3%. The merchandise margin increased as a result of higher full-price selling and a mix shift to VS branded product. Bath & Body Works' SSS increased 6% on top of +6%, 100bps above our forecast, and the merchandise margin was flat yr./yr. We are raising our Q4 EPS estimate by $0.02 to $1.75, $0.01 below prior consensus."
Limited Brands closed at $50.79 on Wednesday.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.