Barclays analyst recommends loading up on Victoria’s Secret on the recent weakness.
Adrienne Yih upgraded the fashion retailer this morning to “overweight”, citing confidence in “meaningful top-line acceleration and operating margin expansion.”
But how high could Victoria’s Secret stock go in 2025? Let’s explore.
How high could Victoria’s Secret stock go in 2025?
If you invested $1,000 in Victoria’s Secret today, you could end this year with close to $1,400, according to Barclays analyst Adrienne Yih.
Her price target essentially indicates potential for about a 40% upside in VSCO from current levels.
“Consensus estimates are too low and will be revised upwards over the next 12 to 24 months. And where estimates go, the stock should follow,” Yih told clients in a research note.
Barclays’ recent checks signal an increase in full-price sales that may serve as a meaningful catalyst for Victoria’s Secret stock moving forward, she added.
All in all, the investment firm expects positive promotional inflection, positive comparables inflection, and positive sales-to-inventory spread together to drive VSCO shares up in 2025.
Yih has confidence in VSCO’s management
Adrienne Yih is bullish on Victoria’s Secret also because she has immense confidence in the leadership of Hillary Super who was named the company’s chief executive in 2024.
She, therefore, raised her adjusted EPS estimates for this year as well as 2026.
Barclay’s bullish note on VSCO arrives more than a month after it reported its financial results for the third quarter that topped Street estimates.
At the time, chief executive Hillary Super told investors:
“The strong product acceptance supported by our best-in-mall store experience and dozens of digital enhancements are driving solid conversion and basket size.”
Note that Victoria’s Secret stock does not pay a dividend at the time of writing.
Jefferies is bullish on Victoria’s Secret too
In December, Victoria’s Secret guided for a 2% to 4% increase in net sales in its fiscal Q4. Adjusted earnings on a per-share basis are seen falling between $2 and $2.30.
“Our merchandise offering and giftable products assortments are resonating with the customer and driving traffic both in stores and online,” CEO Super revealed in a press release at the time.
Note that Barclays is not the only investment firm that’s bullish on VSCO.
Jefferies analysts also recommend loading up on Victoria’s Secret stock on the recent weakness.
They call for an even bigger upside in it to $55 which indicates a 45% upside from current levels.
The investment firm expects the fashion retailer to benefit as brand recovery efforts bear fruits and macro headwinds continue to subside in 2025.
Despite the recent pullback, it sees the long-term opportunity as unchanged and favors buying VSCO as it’s “capable of restoring lost sales while recapturing margin.”
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