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Fly News Breaks for February 28, 2020
GPS, LB
Feb 28, 2020 | 07:23 EDT
UBS analyst Jay Sole raised the firm's price target on L Brands (LB) to $25 from $19.50 but keeps a Neutral rating on the shares. The analyst notes that with the sale of VS, RemainCo's earnings growth is now seen at 7% vs. his prior view of down 3%, leading to higher multiples for the stock. Sole remains concerned however about the dis-synergy costs' potential negative surprise a-la Gap's (GPS) recent attempted spin-off as well as the impact of supply chain disruptions related to coronavirus.