L Brands shares may trade on split potential, not fundamentals, says Citi
Citi analyst Paul Lejuez does not "see light at the end of the tunnel" for Victoria's Secret given the brand's current direction. He notes that L Brands' holiday sales yesterday came in below expectations. However, the market is now interpreting the "extremely tough" times at Victoria's Secret as more of a call to action to take a strategic review of the brand portfolio, Lejuez tells investors in a research note. As such, L Brands shares may not trade on fundamentals, but rather more on a split potential, adds the analyst. He believes that as long as Bath & Body Works continues to be strong, the shares are likely to remain range bound. Lejuez keeps a Neutral rating on L Brands.