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L Brands Share-Price Targets Up After Unexpected Profit

L Brands shares rose as at least two analysts raised their price targets after the owner of Victoria's Secret posted an unexpected profit.

L Brands  (LB) - Get L Brands, Inc. (LB) Report shares rose Thursday, as at least two analysts raised their price targets after the owner of Victoria's Secret and Bath & Body Works posted an unexpected adjusted profit and stronger-than-anticipated sales.

L Brand shares recently traded at $30.02, up 5.4%, and have surged 65% year to date. They remain down 63% over the past five years, compared to a 71% gain for the S&P 500.

J.P. Morgan analyst Matthew Boss lifted his share-price target for the Columbus, Ohio, company to $35 from $32, maintaining his overweight rating. He acted based on the earnings numbers.

Wells Fargo analyst Ike Boruchow boosted his price target price to $40 from $35, keeping his overweight rating, after the earnings news.

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L Brands reported a net loss of $49.6 million, or 18 cents a share, for the fiscal 2020 second quarter ended Aug. 1. That's a reversal from a profit of $37.6 million, or 14 cents a share, in the year-earlier period.

But adjusted earnings totaled 25 cents a share in the latest quarter, up from 24 cents a share last year and bettering the FactSet analyst consensus of a 38-cent loss.

Revenue dropped 20% in the latest quarter to $2.32 billion from $2.9 billion a year ago. But the latest figure beat analysts’ prediction of $2.19 billion.

L Brands stores were shuttered intermittently during the second quarter because of the coronavirus pandemic. But most Bath & Body Works and Victoria's Secret stores in North America reopened by Aug. 1. 

"Given the continuing high level of uncertainty in the current environment, the company is not providing third quarter or full-year 2020 earnings guidance," L Brands said.