MW L Brands upgraded on heightened potential for a Victoria's Secret transaction
L Brands Inc. (LB) was upgraded to overweight from sector weight at KeyBanc Capital Markets on the increased potential of a "value-creating transaction" as the company's Victoria's Secret brand continues to languish. KeyBanc has a $25 price target. Analysts note the "stark differential" in performance between the lingerie brand and L Brands' beauty chain, Bath & Body Works, and the "lack of any discernable turnaround" at Victoria's Secret. KeyBanc says Bath & Body Works would be attractive on its own after eight consecutive quarters of same-store sales of 5% or more, and 9% same-store sales growth over the holidays. Analysts see the value in turning around the Victoria's Secret business, which still has $2.8 billion in revenue despite recent declines, a powerful brand and the Pink brand. But analysts think the turnaround could be better achieved as a private entity. L Brands stock has sunk 26.8% over the last year while the S&P 500 index is up 24.3% over the period.
-Tonya Garcia; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
January 21, 2020 10:23 ET (15:23 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
MW L品牌升級維多利亞祕密交易的潛力
L Brands公司(Lb)在KeyBanc資本市場(KeyBanc Capital Markets)，隨着該公司的維多利亞祕密(Victoria‘s Security)品牌繼續衰落，“創造價值交易”的潛力不斷增加，該公司已從行業權重提升至增持。KeyBanc的目標價格為25美元。分析人士指出，在內衣品牌與L品牌的美容連鎖店“沐浴與身體工程”(Bath&Body Works)之間存在着“明顯的差異”，而“維多利亞的祕密”(Victoria‘s Security)“沒有任何明顯的轉變”。KeyBanc説，Bath&Body Works在連續8個季度的同店銷售額達到5%或更高，以及9%的同店銷售額在假日期間增長之後，將對自己有吸引力。分析師認為扭轉維多利亞祕密業務的價值。儘管最近出現下滑，但該公司仍有28億美元的收入，擁有強大的品牌和粉紅品牌。但分析師認為，作為一個私人實體，這一轉變可能會更好地實現。在過去一年裏，L品牌股價下跌了26.8%，而標準普爾500指數同期上漲了24.3%。
-Tonya Garcia；415-439-6400；AskNewswres@dowjones.com
(完)道瓊斯通訊社
2020年1月21日10：23(格林尼治時間15：23)
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