LB - L Brands attracts Wall Street love as Victoria's Secret deal nears

Bank of America adds to its constructive view on L Brands (LB) after reports that the company is restarting talks with private equity firms on the sale of Victoria's Secret.BofA thinks L Brands management will opt for a spinoff if it can't land an offer in the $4B to $5B range for the VS business.The firm also expects the potential spin or sale of Victoria's Secret to lead to multiple expansion for the Bath & Body Works business."We use 10x EBITDA for BBW in our sum-of-the-parts price objective, but see room for upside to 14x if a spin is executed, as a separation would allow investors to own one of the most consistent growth concepts in retail as a standalone."A Buy rating is kept in place on L Brands and price objective of $75.L Brands closed at $67.38 on Friday, not far from the 52-week high of $67.91.UBS slotted L

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L Brands attracts Wall Street love as Victoria's Secret deal nears