How Wall Street Views L Brands ahead of Q2 2018 Results

Wall Street’s view of L Brands

In this part of the series, we’ll look at Wall Street’s recommendation on L Brands (LB) and talk about analysts’ take on the company. Wall Street has a neutral to negative view on LB and has rated the stock a 2.9 on a scale where one is a “strong buy” and five is a “strong sell.”

L Brands’s ratings have deteriorated over the past six months. The company was rated a 2.6 in February. However, weak sales and falling margins triggered downgrades by Atlantic Equities in May and Telsey Advisory Group in March. On the other hand, Citigroup upgraded LB, citing cheap valuations.

How Wall Street Views L Brands ahead of Q2 2018 Results

Comparing LB’s ratings with peers

Competitors Abercrombie & Fitch (ANF) and Ralph Lauren (RL) have similar ratings. While ANF is rated a 2.9, RL is ranked a 3.0. American Eagle Outfitter (AEO) has a slightly better rating of 2.5.

Recommendations

27 Wall Street analysts cover L Brands. 26% of the analysts tracking the company recommend buying the stock, 56% suggest holding it, while the remaining 19% have set a sell rating on the company.

Analysts from Wedbush and UBS are neutral on L Brands. Citigroup and Northcoast are positive, while Loop Capital is negative on the company.

Target price

L Brands’s stock is currently trading at $32.11 as of August 16, 2018, around 96% below its 52-week high price. Wall Street is expecting some bounceback in the stock and has projected upside of 13% for the company. Analysts, on average, have set a price target of $36.14 for LB. Individual target prices on the company range from $23 to $56.