L Brands (NYSE:LB) news for Friday includes a Bank of America upgrade boosting LB stock up higher.
This upgrade comes from Bank of America analyst Lorraine Hutchinson. The analyst sees potential for the company and is increasing her rating for it to “Buy.” The previous rating for LB stock was “Neutral.”
The positive L Brands news doesn’t stock with a rating upgrade. Hutchinson also increases her price target for the stock from $21 to $25. That’s a $19.05% increase. It’s also 42.94% above the stock’s closing price of $17.49 per share on Thursday.
The Bank of America analyst believes that there a few steps that L Brands can take to better its business. The first is reintroducing swimwear, which it dropped in 2016. Secondly, the company could rebrand itself to be more inclusive in an attempt to attract Millennials.
Another option available to L Brands includes a spinoff of Bath & Body Works. This would allow it to saddle the brand with its debt, which would be easier for Bath & Body Works to pay off due to how profitable it is, reports Benzinga.
Rocky White, the Senior Quantitative Analyst at Schaeffer’s, has a different take on LB stock. He’s gone so far as to include it on his list of 25 stocks that investors should avoid during the current quarter.
LB stock was up 8.27% when markets closed on Friday.
As of this writing, William White did not hold a position in any of the aforementioned securities.
