L Brands 'Still Very Sexy' At Topeka, Buy Rating Initiated

In a report published Monday, Topeka Capital Markets analyst Dorothy Lakner initiated coverage of L Brands Inc (NYSE: LB) with a Buy rating and $106 price target, as its two powerful brands have plenty of room to grow both domestically and internationally.

Lakner argued that Victoria's Secret has a "big market share" domestically, but has only just begun to grow internationally. On the other hand, Bath & Body Works "dominates its space" and generates higher margins than Victoria Secret.

Bottom line, L Brands has a strong management team coupled with strong cash flows and shareholder returns, making it a "core holding" for any consumer portfolio.

Shares traded recently at $93.93, up 0.55 percent.