Morgan Stanley Sees International Growth Ramping Up on L Brands

In a report published Friday, Morgan Stanley analyst Kimberly C. Greenberger reiterated an Overweight rating and $66.00 price target on L Brands (NYSE: LB).

In the report, Morgan Stanley noted, “We think the Street underestimates the company's international growth and EBIT margin expansion opportunity. We find current 15x FY15 EPS valuation attractive for two brands (Victoria's Secret and Bath & Body Works) with no real peers and genuine global growth prospects. We have conviction in our above consensus, out-year EPS estimates. We believe a 20% operating margin in the long run is achievable.”

L Brands closed on Thursday at $56.05.