L Brands' Price Target From Morgan Stanley Raised to $81 From $73 as Q1 Preannouncement Tops Views; Overweight Kept
08:39 AM EDT, 05/12/2021 (MT Newswires) -- L Brands (LB) received a boost to its price target late Tuesday from Morgan Stanley after the retailer pre-announced Q1 earnings above its prior guidance and analysts' expectations while unveiling plans to spin off Victoria's Secret into a separate public company.
Morgan Stanley's new price target on L Brands' stock is $81 per share, up from $73. This moves the target further above the stock's Tuesday closing price of $67.57 as Morgan Stanley kept its investment rating on the shares at overweight.
"Ongoing profitability improvement at [Victoria's Secret], continued top-line & profitability strength at [Bath & Body Works], and above-expectations 1Q21 preliminary earnings results confirm LB may deliver its most profitable year in its history in 2021," Morgan Stanley equity analyst Kimberly Greenberger said in a note to clients.
The firm said the increase to its price target on L Brands' stock reflects improved expectations for 2021 and the medium term following the company's better-than-expected preliminary Q1 results.
"But we see upside to our still-conservative model, and expect the stock to rise on continued beats and guidance raises" through 2021, the firm added.
On average, analysts polled by Capital IQ have an outperform investment rating on L Brands' shares, with price targets ranging from $34 to $96.
(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)
Price: 67.57, Change: 0.00, Percent Change: 0.00