UPDATE: Citigroup Reiterates Neutral, Lowers PT to $40 on Limited Brands

Citigroup maintains its Neutral rating on Limited Brands (NYSE: LTD) and lowers its price target to $40 from $42 as it believes the company has limited upside to earnings given progress so far.

Citigroup says, "The company has largely realized a significant portion of its long-term margin target, and we expect earnings growth to be more subdued in 2011 as LTD cycles healthy merchandise margins."

LTD closed at $39.25 per share on Wednesday.