Sterne Agee Starts Off Limited Brands with a "Buy" Rating (LTD)

Sterne Agee Starts Off Limited Brands with a “Buy” Rating (LTD)

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Sterne Agee analysts initiated coverage on specialty retailer Limited Brands, Inc. (LTD) on Monday with a bullish rating, citing international opportunities as a catalyst for growth.

The analysts rate LTD as a “Buy” with a price target of $54. This valuation suggests a 20% upside to Friday’s closing price of $45.02.

A Sterne Agee analyst commented, “[T]he company has a large international growth opportunity, and we see an ability to more than double international sales over the next 5 years and quadruple sales over the longer term (with even larger impacts on contribution margins). We also see a meaningful opportunity domestically to expand selling space in existing VS stores and increase penetration of non-core categories such as PINK, VSX and beauty. A 2.7% dividend yield (or 4.9% assuming another year with a $1/share special dividend) should help support downside risk.”

Limited Brands shares were inactive during pre-market trading on Monday. The stock is down about -3% over the past twelve months.

The Bottom Line
Shares of Limited Brands (LTD) have a dividend yield of 2.67% based on Friday’s closing price of $45.02 and the company’s annualized dividend payout of $1.20 per share.

Limited Brands, Inc. (LTD) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

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