UPDATE: Stifel Upgrades L Brands

In a note released Friday morning, Stifel analyst Richard jaffe upgraded shares of L Brands, Inc.

from Hold to Buy amid "solid" first quarter results. Jaffe began the note by citing first quarter sales growth of 5 percent and an above consensus EPS of $0.53. Additionally, Jaffe noted that this was achieved without sacrificing merchandise margins, which were approximately flat year-over-year. In the near-term, Jaffe believes that the company may be negatively impacted by $0.10 - $0.12 by its recent exit from apparel and makeup. However, he sees this as allowing management to focus in on driving sales and margins for its core offerings.