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Update: L Brands Still Has Room To Grow

A little over two months ago, we published an article recommending longing L Brands (LB) and set a $110 price target on the stock. We believed the company had tremendous upside in the 2014 holiday sales season, as well as significant growth opportunities within the PINK segment, Victoria's Secret's college-girl line.

Since then the stock has gained nearly 13%, including a recent spike due to increased guidance from management.

LB data by YCharts

In light of this, we believe the company still has upside to investors, though we would like to slash our price target from $110 to $104, as we believe we overshot growth projections for the employees' reward program.

We still affirm that LB is smoothly transitioning to a fantastic side-by-side business model, which should aid margins going forward and help sustain high EPS growth. The upside from PINK and international expansion are still very relevant catalysts for… Read More …