LB - L Brands lands higher price target from Telsey

Telsey Advisory Group lifts its price target on L Brands (LB) to $65 from $54 after seeing continued momentum in the retailer's Q4 results.Analyst Dana Telsey: "The company's ability to deliver a compelling offering at both brands, while pulling back on promotional activity helped drive significant merchandise margin improvement across the business last quarter, which has likely continued into early FY21. In addition, though one-time in nature, rent relief helped lower buying and occupancy costs in the fourth quarter, which further boosted gross margin."Despite the momentum and Victoria' Secret returning to profitability, Telsey remains cautious over the ultimate positioning of the brand as consumer preferences evolve."While we recognize the momentum in BBW, difficult compares lie ahead and the outsized operating margin generated by the business last year is unlikely to be repeated."A Market Perform rating is kept in place.The new price target from Telsey assumes a 14X multiple on the

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L Brands lands higher price target from Telsey