L Brands Inc (NYSE: LB) shares rose 2.36 % today as it posted its seventh-straight quarter of positive earnings but broker Jefferies does not share the bullish sentiment of the market.
Analyst Randal Konik repeated an 'underperform' rating on the shares and targets $35 a share - the current price is $49.55.
The specialty retailer of women's apparel and the owner of the Victoria's Secret brand posted quarterly earnings of 33 cents per share beating consensus of 29 cents and also came above the company's initial guidance of 20 to 25 cents - mainly due to tax rates.
Jefferies reckons then stock is under pressure due to the poor trends at the PINK brand and as yet no visibility into improved trends at Victoria's Secret.
The prospect of L Brands' international growth is also not clear, reckons the broker, as international comparables for Victoria's Secret fell in every part of the world, driven in part by the company's exit of swimwear and apparel but also due to weakness in beauty products.