Barclays upgrades Victoria’s Secret, says retailer can rally more than 40%

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Barclays upgrades Victoria’s Secret, says retailer can rally more than 40%

Victoria’s Secret is once again a hot stock, according to Barclays. In a note titled “Bringing Sexy Back,” analyst Adrienne Yih upgraded shares of the women-focused retailer to overweight from equal weight. Yih also lifted her price target by $2 to $53, now suggesting 41.9% upside over Monday’s closing level. “While we missed the stock move off its mid-2024 lows, we now have greater confidence in meaningful top-line acceleration and operating margin expansion,” Yih told clients. “We believe 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 said improved full-price selling seen via Barclays proprietary promotional tracker checks off the final box for critical fundamental catalysts. The three items on this checklist are: Positive promotional inflection (seen this quarter) Positive comparables inflection (seen in the third fiscal quarter of 2024) Positive sales-to-inventory spread (seen in the fourth fiscal quarter of 2023) The analyst also called Hillary Super, the Savage X Fenty alum brought in to be Victoria’s Secret’s CEO last year, the “right” leader to spearhead the brand’s renewal. In addition to hiking the price target, Yih raised her estimates for adjusted earnings per share for the fiscal years of 2024, 2025 and 2026. She said this was largely done to reflect improved expectations for sales and gross profit in the 2025 and 2026 fiscal years. Shares jumped just over 3% before the bell on Tuesday. The stock has tumbled nearly 10% in 2025, reversing course after surging more than 56% the prior year. VSCO YTD mountain Victoria’s Secret, year to date To be sure, analyst sentiment on the stock is muted. LSEG data shows that nine of 12 analysts covering Victoria’s Secret rate it a hold or underperform. Only three have a buy or strong buy rating.

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