Victoria’s Secret & Co. shares moved higher after Bank of America upgraded the retailer to Buy from Neutral, citing improving growth prospects, stronger margins and renewed confidence in the brand’s turnaround strategy. The call adds fresh momentum to one of the more closely watched recovery stories in U.S. retail this year. (Investing.com Canada)
Bank of America raised its price target to $68 from $58, implying notable upside from recent trading levels near $52. Analysts said management’s repositioning efforts appear to be gaining traction through product innovation, stronger marketing execution and expansion into faster-growing categories such as beauty and international markets. (Investing.com Canada)
The brokerage also pointed to signs that Victoria’s Secret core intimates business has returned to growth, while customer acquisition trends have improved. Those indicators suggest the company may be stabilizing after a volatile multi-year period marked by brand resets, leadership changes and shifting consumer preferences. (Investing.com Canada)
Updated forecasts now imply mid- to high-teen annual earnings-per-share growth over coming years, supported by operating leverage and higher sales. Under stronger execution scenarios, analysts said earnings growth could exceed 20%, while revenue may rise above $7.3 billion by 2028. (Investing.com Canada)
The stock remains divisive among investors. Bulls argue the company is undervalued relative to consumer brands with similar growth profiles, while skeptics note fashion retail remains highly competitive and sensitive to consumer spending cycles. Consensus analyst targets compiled by Investing.com still point to moderate upside overall. (Investing.com)
For the broader market, the upgrade highlights renewed appetite for selective turnaround plays beyond megacap technology names. If Victoria’s Secret can sustain traffic gains and margin expansion, it may continue attracting investors searching for under-owned consumer recovery stocks.
This article is for informational purposes only and does not constitute financial or investment advice.
Sources
- Investing.com – BofA upgrades Victoria’s Secret to Buy on growth prospects (Investing.com Canada)
- TipRanks/TheFly – Victoria’s Secret upgraded to Buy from Neutral at BofA (tipranks.com)
- Investing.com – Victoria’s Secret analyst consensus estimates (Investing.com)
