L Brands shares have 50% downside left with promos picking up, says Jefferies
L Brands' Victoria's Secret and PINK increased promos this weekend with a "Buy 3 Get 3 Free" deal, Jefferies analyst Randal Konik tells investors in a research note. While a bull would say L Brands is clearing the deck for 2019, the promos show issues with traffic, pricing architecture and brand relevance, Konik contends. He believes investors are underestimating "just how impaired these brands are and thus how deep/long the issues will continue be." Further, the analyst sees promos beginning to accelerate at L Brands' Bath and Body Works brand, too. He remains a seller of the stock with "~50% downside left." The analyst keeps an Underperform rating on L Brands with a $21 price target.