"L Brands continues to lack any near-term catalysts that we think would drive shares out of their current range, keeping us on the sidelines," analyst Laura Champine said.
Analysts cited that the reduction of the price target was based on their DCF model as they are adjusting their long-term, bottom-line projections slightly lower on the expectation for labor and other cost inflation.
However, they added that a decision to more aggressively expand the Victoria's Secret lingerie business on a global scale would be the catalyst they would like to see to be more constructive.
L Brands is an international company that operates as a specialty retailer of women's intimate and other apparel. Its flagship brands include Victoria's Secret and Bath & Body Works.
TheStreet Ratings team rates L BRANDS INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate L BRANDS INC (LB) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, revenue growth, solid stock price performance and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."