L Brands Inc.’s stock rose 1.3% in morning trade Monday, bucking the selloff in the broader stock market, after Stifel Nicolaus said it turned bullish on the apparel retailer because the recent tumble in price is “overdone.” Analyst Richard Jaffe raised his rating to buy from hold, and instituted a stock price target of $90, which is 16% above current prices. The stock had plunged 20% year-to-date through Monday, to close at a 17-month low, amid concerns over its large store footprint and uncertainty surrounding the restructuring at Victoria’s Secret. Jaffe said he believes the changes being made “are the right moves,” and will strengthen the business longer term. “While we acknowledge there may be a better entry point into the name over the next several weeks, we believe the risk/reward is attractive at the current share price,” Jaffe wrote in a note to clients. While the stock rose in morning trade, the SPDR S&P Retail ETF slid 0.9% and the S&P 500 gave up 0.6%.
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