Balancing Turnaround Momentum and Emerging Headwinds: Rationale Behind a Hold Rating and Trimmed Price Target

Analyst Jonna Kim of TD Cowen maintained a Hold rating on Victoria’s Secret, with a price target of $58.00.

Jonna Kim has given his Hold rating due to a combination of factors tied to both strong recent performance and emerging risks. The company is clearly executing well, with rising average unit retail, reduced discounting, and healthy demand among younger shoppers—particularly at PINK—supporting the case that the turnaround is gaining traction and that brand relevance is improving.

At the same time, she sees limited near‑term upside as valuation already reflects much of this progress and tougher comparisons in the back half of 2026 could temper growth optics. Incremental cost pressures from tariffs and higher SG&A are likely to constrain margin expansion, reducing the potential benefit to earnings despite solid top‑line momentum. As a result, she trims the price target and maintains a neutral stance while recognizing that continued flawless execution could still drive EPS above current expectations.

In another report released yesterday, TipRanks – PerPlexity also downgraded the stock to a Hold with a $63.00 price target.