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L Brands (LB) Stock Tumbling on Analyst Downgrade

NEW YORK (TheStreet) -- L Brands (LB - Get Report) stock is slumping 4.81% to $78.52 on Wednesday morning after analysts at BMO Capital Markets downgraded the company to "market perform" from "outperform" and lowered their price target to $76 from $103.

Until now, analysts were bullish as fundamentals at Victoria's Secret and Bath & Body Works showed signs of gaining traction, the firm stated.

But now, as Victoria's Secret had heavier-than-expected markdowns on swimwear, analysts are predicting its second quarter operating margin to be flat. It will report its latest quarterly results on August 20.

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Despite the price target change, the firm still believes that the stock is a compelling story long-term, according to the analyst note.

L Brands operates as a specialty retailer of women¿s intimate and other apparel, beauty and personal care products, and accessories. The company operates in three segments:...