Victoria’s Secret stock price target raised by UBS to $25 from $21

Investing.com - UBS raised its price target on Victoria’s Secret (NYSE:VSCO) to $25.00 from $21.00 on Friday, while maintaining a Neutral rating on the stock. The new target sits near the middle of the analyst range between $16 and $27, with the stock currently trading at $23.23. According to InvestingPro analysis, the stock appears slightly overvalued at current levels.

The price target increase follows Victoria’s Secret’s second-quarter comparable sales growth acceleration and strength in the third quarter to date, which UBS views as signs that management initiatives to reignite growth are yielding results. The company, with annual revenue of $6.27 billion and a market capitalization of $1.78 billion, has maintained a gross profit margin of 36.3%.

UBS believes Victoria’s Secret is progressing in the right direction to stabilize its market share in core North America intimates and drive growth in adjacent categories.

Despite these positive developments, UBS cited challenges in the intimates categories and persistent tariff headwinds as factors that could limit earnings per share growth potential over the next twelve months.

The firm forecasts a 5% six-year EPS compound annual growth rate for Victoria’s Secret, which it believes justifies a 10x price-to-earnings ratio, noting there is "decent potential upside" to the $25 price target but not enough to warrant a more positive outlook on the stock.

In other recent news, Victoria’s Secret reported its second-quarter earnings for 2025, surpassing analyst expectations. The company achieved an earnings per share of $0.33, significantly higher than the forecasted $0.13. Revenue also exceeded projections, reaching $1.46 billion compared to the anticipated $1.41 billion. Despite the strong earnings performance, Jefferies lowered its price target for Victoria’s Secret to $26 from $28, citing tariff concerns, while maintaining a Buy rating. This adjustment came after the company’s second-quarter results showed accelerating momentum. These developments reflect ongoing investor interest and analyst evaluations of Victoria’s Secret’s financial performance.

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