UPDATE: Sterne Agee Initiates Limited Brands at Buy on International Opportunities

Sterne Agee initiated coverage on Limited Brands

with a Buy rating and a $54.00 price target. Sterne Agee said, "[T]he company has a large international growth opportunity, and we see an ability to more than double international sales over the next 5 years and quadruple sales over the longer term (with even larger impacts on contribution margins). We also see a meaningful opportunity domestically to expand selling space in existing VS stores and increase penetration of non-core categories such as PINK, VSX and beauty. A 2.7% dividend yield (or 4.9% assuming another year with a $1/share special dividend) should help support downside risk." Limited Brands closed at $45.02 on Friday.