What Happened?
Shares of intimatewear and beauty retailer Victoria’s Secret (NYSE: VSCO) jumped 6.1% in the afternoon session after an analyst at Telsey Advisory Group raised the company's price target to $29 from $24. While the firm, led by analyst Dana Telsey, maintained its "Market Perform" rating on the stock, the new price target represents a significant 20.8% increase. This adjustment signals a more optimistic outlook on the company's market performance and potential stock value. This positive revision provided a catalyst for the shares, as investors often see increased price targets as a sign of confidence from Wall Street in a company's future prospects, even without a formal rating change.
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What Is The Market Telling Us
Victoria's Secret’s shares are extremely volatile and have had 40 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 16 days ago when the stock gained 4.3% on the news that it received positive attention from Wall Street analysts, including a new price target from JP Morgan. On September 15, JP Morgan set a price target of $28.00 for the company. This followed a similar move on September 12 by Morgan Stanley, which increased its price target on the stock by 35% to $27.00 from a previous $20.00. While raising its price valuation, Morgan Stanley maintained its "Equal-Weight" rating on Victoria's Secret shares. The adjustments from two major analyst firms suggest a more optimistic outlook on the stock's value.
Victoria's Secret is down 28.2% since the beginning of the year, and at $29.03 per share, it is trading 40.4% below its 52-week high of $48.71 from December 2024. Investors who bought $1,000 worth of Victoria's Secret’s shares at the IPO in July 2021 would now be looking at an investment worth $683.15.
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