NEW YORK (TheStreet) -- Shares of L Brands Inc (LB) were rallying, up 0.42% to $87.83 in early market trading Tuesday, after analysts at Goldman Sachs added the parent company of Victoria's Secret to the firm's "conviction buy" list this morning along with Dollar General (DG).
L Brands was upgraded to "conviction buy" from "buy" with a higher price target of $106 from $104.
Goldman calls L Brands one of the highest quality growth companies in consumer retailing.
The firm said the stock's recent underperformance provides an attractive entry point.
Goldman analysts noted that the company's U.S. business is very strong, and that its exposure in international markets could double total sales and retail over the next 10 years.
Columbus, Ohio-based L Brands is a specialty retailer of women's intimate and other apparel, beauty and personal care products and accessories.
The company sells its merchandise through company-owned specialty retail stores, which are mall-based.
L Brands operates in three reportable segments including Victoria's Secret, Bath & Body Works and Bath & Body Works International. The company also operates the retail brands PINK, La Senza and Henri Bendel.
Separately, 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 a number of strengths, 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 no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."