L Brands, Gap, Ralph Lauren Get One Wall Street Firm’s Attention - Video - TheStreet

L Brands, Gap, Ralph Lauren Get One Wall Street Firm’s Attention

In Thursday's Analysts' Actions, one Wall Street firm is giving all its attention to L Brands (LB), Gap (GPS) and Ralph Lauren (RL).
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In Thursday's Analysts' Actions, one Wall Street firm is giving all its attention to L Brands (LB), Gap (GPS) and Ralph Lauren (RL). Barclays started coverage of L Brands with an EQUAL WEIGHT rating and a $85 price target. Analysts said the company has an impressive business model, but there are risks of near term downside. For instance, they think Victoria's Secret comps could fall to less than 3% next year. Adding to this, there's some uncertainty in margins. In the same note, analysts began coverage of Gap with an UNDERWEIGHT rating and a $22 price target. The Gap brand turnaround will take some time, they said. On top of this, the company is shedding a lot of money on heavy marketing and store updates. The firm is bearish for now. The same firm downgraded Ralph Lauren. The company's rating was dropped to EQUAL WEIGHT from OVERWEIGHT and its price target slashed to $130 from $150. More work needs to be done on infrastructure, analysts said. But, the company is headed in the right direction in terms of investments and strategic efforts. TheStreet's U-Jin Lee reports in New York.