- Morgan Stanley upgrades L Brands (NYSE:LB) to an Overweight rating.
- Analyst Kimberly Greenberger: "Sequential profitability improvement at VS, continued top line and profitability strength at BBW, and above-expectations 1Q21 guidance confirm LB will be more profitable in 2021 than it was for the last 5 years. 2H20 results and 1Q21 guidance leave us incrementally confident in VS' turnaround and profitability trajectory as well as BBW's revenue growth sustainability and margin expansion opportunity."
- The firm assigns a price target to $65 on an improved M-T operating forecast and sum-of-the-parts valuation methodology.
- Also on Wall Street today, Citi lifted L Brands to a Neutral rating and Evercore moved to an Outperform rating.
- Shares of L Brands are up 1.65% premarket to $53.22.
- There is some speculation that L Brands could be worth $4B in a sale.