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Investing.com - Jefferies raised its price target on Victoria’s Secret (NYSE:VSCO) to $30.00 from $26.00 on Thursday, while maintaining a Buy rating on the lingerie retailer’s shares. According to InvestingPro data, the stock has shown strong momentum with a 58% return over the past six months, though current analysis suggests the stock is trading above its Fair Value.
The investment firm’s decision follows a meeting with Victoria’s Secret’s CFO, where Jefferies noted the company is entering the second half of 2025 with strong momentum driven by disciplined execution, product innovation, and a shift toward full-price selling. The company maintains a "GOOD" Financial Health Score on InvestingPro, with a solid gross profit margin of 36.3%.
Despite facing tariff headwinds, Victoria’s Secret is maintaining its guidance and continuing to invest in branding, stores, and international expansion, according to Jefferies.
The firm highlighted positive comparable sales, emotional product resonance, and negative sentiment with over 20% short interest as factors supporting its bullish outlook on the stock.
Jefferies also identified Victoria’s Secret’s upcoming fashion show as a potential catalyst for the shares, suggesting "now is the time to lean in" on the investment opportunity.
In other recent news, Victoria’s Secret reported its second-quarter earnings for 2025, significantly surpassing analyst expectations. The company achieved an earnings per share of $0.33, well above the forecasted $0.13. Additionally, Victoria’s Secret’s revenue exceeded projections, coming in at $1.46 billion compared to the anticipated $1.41 billion. UBS responded to this strong performance by raising its price target for Victoria’s Secret to $25 from $21, while maintaining a Neutral rating. UBS noted the company’s comparable sales growth acceleration and management initiatives as positive signs. Meanwhile, Jefferies adjusted its price target to $26 from $28, citing tariff concerns but maintaining a Buy rating. Jefferies highlighted the company’s second-quarter performance, which exceeded both top-line and bottom-line guidance. These developments reflect a mix of optimism and caution among analysts regarding Victoria’s Secret’s future prospects.
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