NEW YORK (TheStreet) -- Shares of L Brands (LB) were falling 7.58% to $66.72 in early morning trading on Tuesday after the company decreased its view for 2016 third quarter earnings and issued lower-than-anticipated October same-store sales estimates late yesterday.
Mizuho downgraded the stock to "neutral" from "buy" earlier today following L Brands' "cloudy" outlook.
The firm also cut its price target to $70 from $85 on shares of the Columbus, OH-based company, the Fly reports.
L Brands' lower guidance shows "the severity of the challenges" ahead of the company, Mizuho noted.
The operator of Victoria's Secret and Bath & Body Works stores will post 2016 third quarter results after the closing bell on November 16.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings rated this stock as a "hold" with a ratings score of C+.
The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth and expanding profit margins. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.
You can view the full analysis from the report here: LB