Google Upgraded by Analysts; L Brands, Fossil's Futures Look Dull

In Wednesday's Analysts' Actions, one Wall Street firm is praising Google's (GOOGL) Alphabet shakeup, while L Brands’ (LB) and Fossil Group's (FOSL) future may look a little dull. Morgan Stanley upgraded Google to OVERWEIGHT from EQUAL WEIGHT with a $820 price target. As the search giant rebranded itself as Alphabet on Monday, analysts believe this is a good move. The new holding company will oversee Google and its entities. According to the firm, Alphabet's increased transparency is a 'positive step to better understand core Google profitability,' and the change will eventually lead to higher cash flow. Analysts are also more bullish on Google's YouTube unit. In another note, BMO Capital Markets lowered its rating on L Brands to MARKET PERFORM from OUTPERFORM. Until now, the firm believed that the fundamentals at Victoria's Secret and Bath & Body Works were gaining traction, but the company may see some challenges ahead. Analysts now expect second quarter operating margin to be flat as Victoria's Secret had heavier-than-expected markdowns on swimwear. BMO dropped its price target to $76 from $103. Finally, KeyBanc Capital Markets cut Fossil Group's price target to $60 from $65. The firm reiterated its UNDERWEIGHT rating. The watch maker reported its quarterly earnings on Tuesday that missed estimates on the top line but beat estimates on the bottom line. It appears the company's watch business is slowing down as it faces competition from Apple’s (AAPL) Apple Watch. In the future, difficult conditions in Europe is expected to weigh down on the stock. TheStreet’s U-Jin Lee reports in New York.