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Investing.com — Victoria’s Secret parent L Brands (NYSE:LB) rose almost 4% after JPMorgan (NYSE:JPM) maintained its buy-equivalent rating.
With a pending spin-off of its top-selling brand Bath & Body Works, analyst Matthew R. Boss raised its price target to $50 from $42 by, according to StreetInsider. The stock currently trades around $34.
Boss cited the company’s “commitment to establish BBW as pure-play public company and return to shareholder value actions.”
In the second quarter, “we took a number of important steps to prepare Victoria’s Secret and Bath & Body Works to operate as standalone separate companies, improve L Brands’ profitability, maintain liquidity during the pandemic and maximize our financial performance,” the company said in a statement in August.
Bath & Body Works should continue to see “high-single-digit sustainable long-term growth,” Boss wrote in a note. The company has also reported solid savings after cutting jobs and costs, and the closure of 250 Victoria’s Secret stores.
L Brands is down about 48% for the year as the pandemic shut down stores and we turned away from sexy underwear and toward indulging ourselves in whipped almond vanilla-scented creams and candles that give off the scent of frosted cranberry.
