Goldman Sachs upgrades Victoria’s Secret stock rating to Neutral from Sell

Published 27/10/2025, 11:06
Goldman Sachs upgrades Victoria’s Secret stock rating to Neutral from Sell

Investing.com - Goldman Sachs has upgraded Victoria’s Secret (NYSE:VSCO) stock rating from Sell to Neutral, setting a price target of $32.00, which represents a 4% downside potential. The company, currently valued at $2.66 billion, trades at a P/E ratio of 13.76x and shows high volatility with a beta of 2.31. InvestingPro analysis reveals 8 additional key insights about VSCO’s current market position.

The investment bank cited Victoria’s Secret’s strengthening brand momentum and consumer engagement with both Victoria’s Secret and PINK brands, following new leadership and implementation of transformation initiatives under the company’s Path to Potential strategy. According to InvestingPro data, the company maintains profitability with positive earnings over the last twelve months and analysts expect continued profitability this year.

Goldman Sachs expects Victoria’s Secret to maintain improved brand momentum, stabilize market share losses through a more robust innovation pipeline, and achieve margin benefits from reduced promotions and marketing efficiencies, despite tariff pressures.

The upgrade comes after Victoria’s Secret shares have returned 89% since Goldman Sachs added the stock to its America’s Sell List on April 24, 2024, outperforming both the S&P 500’s 34% return and the firm’s coverage average of 20% during the same period.

Goldman Sachs now sees a balanced risk/reward profile for Victoria’s Secret stock, prompting the move to a Neutral stance despite challenges from toughening comparisons and increasing tariff pressures.

In other recent news, Victoria’s Secret reported impressive second-quarter earnings for 2025, outperforming analyst expectations. The company posted an earnings per share of $0.33, significantly higher than the forecasted $0.13, while revenue reached $1.46 billion, surpassing the anticipated $1.41 billion. This strong financial performance has been a focal point for investors. Additionally, Jefferies has been actively adjusting its outlook on Victoria’s Secret, initially raising the stock price target to $30 due to strong momentum and later to $35, citing the upcoming Victoria’s Secret Fashion Show as a potential catalyst. However, Jefferies also lowered the price target to $26 due to tariff concerns, despite maintaining a Buy rating. UBS also raised its price target to $25 from $21, highlighting the company’s accelerated sales growth and management’s successful initiatives. These developments underscore the dynamic investment landscape surrounding Victoria’s Secret.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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