After Barington Capital suggested L Brands consider a potential spin-off of Victoria's Secret or an initial public offering of Bath & Body Works, Barclays analyst Chethan Mallela says he does not think a separation is the best path to achieve value creation for shareholders. The analyst, however, continues to view L Brands as undervalued and sees "ample opportunity for value creation." His sum-of-the-parts analysis suggests a possible multiple arbitrage benefit, but with potentially "sizeable risk." Even "without aggressive multiples," he calculates a potential sum-of-the-parts range of $26-$36 per share. However, Mallela believes a separation comes with "significant transaction risk." He sees a combined L Brands as better positioned for value creation. The analyst keeps an Overweight rating on the name with a $31 price target.