Limited Brands, Inc.’s (LTD) Coverage Initiated With A Buy Rating

Analysts Roxanne Meyer and Janice Ong at UBS (NYSE: UBS) have initiated coverage for Limited Brands, Inc. (NYSE: LTD) with a Buy rating, in a report released yesterday. Analysts have set a 12-month price target of $25 for the Limited Brands, Inc. stock.

Analysts believe the company’s focus on innovation within lingerie, and beauty will drive high-quality sales. According to analysts, continued inventory management, fewer promotions, and more strategic marketing should result in better full-price selling, and significant recovery in gross margin.

The $25 price target by analysts is based on a multiple of 17x the 2010 EPS estimate of $1.49.