Ahead Of The Bell: 4Q Recovery Seen For Limited

NEW YORK (AP) — Limited Brands Inc.'s prospects for a fourth-quarter recovery are good after it beat Wall Street expectations, an analyst said Thursday.

Limited, which operates Victoria's Secret, Bath and Body Works and other stores, late Wednesday reported a first-quarter profit, beating expectations for a loss, as cost-cutting efforts offset lower sales.

"Limited is an underloved recovery story," Lazard Capital Markets analyst Todd Slater wrote in a research note to investors. He said the company's improved margins and growing profit from international royalties should help boost its performance.

Slater reiterated a "Buy" rating on the shares and raised his price target to $16 from $15.

Limited said Wednesday it now expects 2009 profit of 67 cents to 87 cents per share, up from earlier estimates of 60 cents to 85 cents per share. Analysts forecast profit of 74 cents per share, on average.

The stock closed Wednesday at $11.66.