LB - L Brands rallies after JPMorgan dials up even more conviction

L Brands ([[LB]] +5.2%) is added by JPMorgan to its Analyst Focus List and called a Value Idea pick. Analyst Matthew Boss: "We maintain shares of LB at Overweight with a revised $42 Dec 2021 price target based on 6x our FY22E EBITDA. The combination of (i) 2H gross profit dollars returning to growth (lapping seven straight quarters of decline with inventory clean), (ii) $400M announced 'net' cost savings through FY20 or 12% of FY19’s expense base, and (iii) 250 VS store closures (= 27% of N/A fleet) with commitment to establish BBW as pure-play public company in our view is too hard to ignore with a risk/reward setup on our FY22E EBITDA of $38-$51." The price target on L Brands is bumped up to $42 from $35 to rep more than 30% upside potential and stand nicely above the average Wall Street PT of $30.88.

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L Brands rallies after JPMorgan dials up even more conviction