"L Brands continues to execute extremely well on its 'focused, fast, and frugal' strategy that has been the secret to success, driving 20%+ average EPS growth for the last five years," analysts said.
The company is setting its sights on winning the "Retail Olympics" and competing with not just U.S. specialty retailers, but some of the best consumer branded companies in the world, the firm said.
Additionally, Bath & Body Works and Victoria Secret's PINK has outperformed other segments, according to the analyst note.
Based in Ohio, L Brands is an American fashion retailer. Its flagship brands include Victoria's Secret and Bath & Body Works.
On Monday, shares closed down 3.38% to $85.08.
Separately, TheStreet Ratings team rates L BRANDS INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate L BRANDS INC (LB) a HOLD. The primary factors that have impacted our rating are mixed, some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. 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 and revenue growth. However, as a counter to these strengths, we find that we feel that the company's cash flow from its operations has been weak overall."