LB - L Brands impresses with holiday tallies

JPMorgan is constructive on L Brands ([[LB]] +6.7%) after taking in the retailer's holiday sales update.The firm keeps LB set with an Overweight rating and raises its price target to $56 (7X the FY22 EBITDA estimate).JP's bull case: "The combination of (i) BBW high-single-digit sustainable long-term growth, (ii) 2H gross profit dollars returning to growth (lapping seven straight quarters of decline with inventory clean), (iii) $400M announced 'net' cost savings through FY20 or 12% of FY19’s expense base, and (iv) 250 VS store closures (= 27% of N/A fleet) with commitment to establish BBW as a pure-play public company and return to shareholder value actions."L Brands reported a 5% jump in comparable sales for the holiday period.

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L Brands impresses with holiday tallies