Bank of America Upgrades Victoria's Secret to Buy Rating
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Should l Buy VSCO?
Source: seekingalpha
- Market Share Growth: Victoria's Secret continues to gain market share in the intimates category, with Analyst Mary Sport noting that declines in the U.S. lingerie sector are moderating, indicating significant competitive progress for the company.
- Profitability Enhancement: Continued sales growth is expected to drive significant operating margin expansion, with Sport projecting mid- to high-teens EPS growth, reflecting the company's strong performance in the market.
- Financial Forecast Upgrade: BofA raised its FY26-FY27 EPS estimates by 3% and 14%, respectively, to reflect improved sales and margin trajectories, showcasing the company's potential in efficiency improvements and sales leverage.
- Price Target Set: BofA set a price objective of $68 for Victoria's Secret, indicating further upside potential for the stock, which jumped 4.4% in premarket trading.
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Analyst Views on VSCO
Wall Street analysts forecast VSCO stock price to rise
11 Analyst Rating
4 Buy
7 Hold
0 Sell
Moderate Buy
Current: 50.880
Low
29.00
Averages
53.40
High
73.00
Current: 50.880
Low
29.00
Averages
53.40
High
73.00
About VSCO
Victoria's Secret & Co. is a specialty retailer of women's intimate and other apparel and beauty products marketed under the Victoria's Secret, PINK, and Adore Me brand names. The Company offers a range of products including bras, panties, lingerie, casual sleepwear, apparel, sport and swim, as well as prestige fragrances and body care. Victoria’s Secret brand offers bras, panties, lingerie, casual sleepwear, swim, lounge and sport, as well as fragrances and body care. PINK is a lifestyle brand for young women providing variety of collections and heritage pieces, including apparel, loungewear, activewear, bras, panties, accessories, beauty, and others. Adore Me is a direct-to-consumer lingerie and apparel brand that is focused on serving women of all sizes and budgets.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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Bank of America Upgrades Victoria's Secret to Buy Rating
- Market Share Growth: Victoria's Secret continues to gain market share in the intimates category, with Analyst Mary Sport noting that declines in the U.S. lingerie sector are moderating, indicating significant competitive progress for the company.
- Profitability Enhancement: Continued sales growth is expected to drive significant operating margin expansion, with Sport projecting mid- to high-teens EPS growth, reflecting the company's strong performance in the market.
- Financial Forecast Upgrade: BofA raised its FY26-FY27 EPS estimates by 3% and 14%, respectively, to reflect improved sales and margin trajectories, showcasing the company's potential in efficiency improvements and sales leverage.
- Price Target Set: BofA set a price objective of $68 for Victoria's Secret, indicating further upside potential for the stock, which jumped 4.4% in premarket trading.
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- Strategic Review Initiated: Victoria's Secret has commenced a strategic review of its non-core asset DailyLook, acquired alongside Adore Me, signaling a shift towards optimizing resource allocation and focusing on core business operations.
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- Asset Impairment Charges: The company disclosed a $116.9 million charge in Q4 related to the impairment of certain long-lived assets from the Adore Me acquisition, which not only affects financial statements but may also raise questions about the company's acquisition strategy among investors.
- Strategic Review Initiated: Victoria's Secret has commenced a strategic review of its non-core asset DailyLook, signaling a reassessment of its business portfolio aimed at enhancing overall operational efficiency and market adaptability, which could influence future business directions.
- Significant Stock Price Drop: Following the financial report, Victoria's Secret's stock price fell by $13.28, or 22.13%, over the next two trading sessions, reflecting market concerns about the company's financial health and potentially leading to further declines in investor confidence.
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- Market Share Growth: Victoria's Secret continues to gain market share in the intimates category, with Analyst Mary Sport noting that declines in the U.S. lingerie sector are moderating, indicating significant competitive progress for the company.
- Profitability Enhancement: Continued sales growth is expected to drive significant operating margin expansion, with Sport projecting mid- to high-teens EPS growth, reflecting the company's strong performance in the market.
- Financial Forecast Upgrade: BofA raised its FY26-FY27 EPS estimates by 3% and 14%, respectively, to reflect improved sales and margin trajectories, showcasing the company's potential in efficiency improvements and sales leverage.
- Price Target Set: BofA set a price objective of $68 for Victoria's Secret, indicating further upside potential for the stock, which jumped 4.4% in premarket trading.
See More
Strait of Hormuz Reopening Boosts Retail Stocks
- Oil Price Impact: The reopening of the Strait of Hormuz has led to a drop in oil prices, significantly reducing transportation costs for retailers, which is expected to boost net margins and stimulate consumer spending on non-essential goods, driving a recovery in the retail sector.
- Supply Chain Stability: As shipping routes in the Middle East normalize, retailers can expect more predictable lead times for international imports, reducing the 'uncertainty discount' in inventory management, enhancing market confidence, and promoting growth-oriented promotions and expansion strategies.
- Consumer Confidence Rebound: Delta's record quarterly sales indicate that discretionary spending power remains strong despite geopolitical pressures, and coupled with a 17% plunge in oil prices, this signals a turning point for the retail sector, alleviating inflationary pressures.
- Victoria's Secret Volatility: Victoria's Secret shares have experienced 36 moves greater than 5% over the past year; despite today's 5.6% increase, the market perceives this news as having limited fundamental impact on the business, reflecting cautious optimism among investors regarding future trends.
See More
Victoria's Secret Under Investigation for Securities Fraud
- Declining Financial Performance: Victoria's Secret reported a 4.7% decline in unadjusted net income for Q4 2025, indicating significant competitive pressures that could undermine investor confidence moving forward.
- Asset Impairment Charges: The company disclosed a $116.9 million charge related to the impairment of long-lived tangible and intangible assets from Adore Me, which negatively impacts its financial health and may necessitate further asset restructuring.
- Strategic Review Initiated: Victoria's Secret has commenced a strategic review of its non-core asset DailyLook, acquired alongside Adore Me, signaling a shift towards optimizing resource allocation and focusing on core business operations.
- Significant Stock Price Drop: Following the financial report, Victoria's Secret's stock price fell by 22.13%, or $13.28 per share, over the next two trading sessions, reflecting market concerns about the company's future outlook.
See More
Victoria's Secret Under Investigation for Securities Fraud
- Declining Financial Performance: Victoria's Secret reported a 4.7% decline in unadjusted net income for Q4 2025, indicating significant pressure in market competition that could impact future profitability and investor confidence.
- Asset Impairment Charges: The company disclosed a $116.9 million charge in Q4 related to the impairment of certain long-lived assets from the Adore Me acquisition, which not only affects financial statements but may also raise questions about the company's acquisition strategy among investors.
- Strategic Review Initiated: Victoria's Secret has commenced a strategic review of its non-core asset DailyLook, signaling a reassessment of its business portfolio aimed at enhancing overall operational efficiency and market adaptability, which could influence future business directions.
- Significant Stock Price Drop: Following the financial report, Victoria's Secret's stock price fell by $13.28, or 22.13%, over the next two trading sessions, reflecting market concerns about the company's financial health and potentially leading to further declines in investor confidence.
See More
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Event Focus: The initiative centers around reimagining the female festival bathroom experience, aiming to enhance comfort and accessibility for attendees.
See More
