UPDATE: Jefferies Downgrades L Brands, Stating 'Numbers at a Peak'

In a report published on Friday, Jefferies analyst Randal J. Konik downgraded L. Brands (NYSE: LTD) from Hold to Underperform and lowered the price target from $46 to $40.

In the report, Jefferies commented that, "LTD is currently at peak margin and sales productivity levels which we expect to come under pressure. We expect GM% declines due to lower SSS gains and higher promotions. We expect increased SG&A as LTD invests in areas such as store payroll (from more full-time associates and increased training) and int'l infrastructure. Our model forecasts operating margin of 15.2% in FY'15 vs. 16.3% in FY'13."

L. Brands closed on Thursday at $50.49