UPDATE: J.P. Morgan Lowers PT on Limited Brands on Growth Opportunities
In a report published Wednesday, J.P. Morgan analyst Brian J. Tunick reiterated his Overweight rating on Limited Brands (NYSE: LTD) but lowered his price target from $52.00 to $50.00.
In the report, Tunick noted, “Given that LTD manages two category leaders in Bath and Body Works and Victoria's Secret; it is in the sweet spot from a specialty standpoint given strong customer loyalty, pricing power, and margin potential. With a more focused approach regarding inventory and systems benefits, management now believes that LTD can approach a high-teens margin rate over the longer term—more appropriate for a scaled, multinational retail business—as it continues to drive productivity enhancements domestically, while beginning to ramp up its international business as well.”
Limited Brands closed on Tuesday at $44.74.
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