UPDATE: Nomura Reiterates on L Brands Following Positive January Comp
In a report published Friday, Nomura analyst Simeon A. Siegel reiterated a Neutral rating on L Brands (NYSE: LB), but lowered the price target from $58.00 to $55.00.
In the report, Nomura noted, “LB's 3rd consecutive 9% January comp vastly outperformed expectations as the semi-annual sales drove stronger-than-expected topline at “significant” merch margin pressure, leading the company to guide to EPS only ‘slightly above' its prior guidance. Although challenging mall traffic forced a promotional driven comp, we do believe the calendar impacted the headline margin number. We maintain our Neutral rating in the face of ongoing challenging trends and our expectation for a below-consensus FY14 guide.”
L Brands closed on Thursday at $53.98.
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