Victoria’s Secret, the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst Alexandra Straton from Morgan Stanley maintained a Hold rating on the stock and has a $29.00 price target.
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Alexandra Straton’s rating is based on a combination of factors that highlight both the potential and challenges facing Victoria’s Secret. The company has a historical and current strategic advantage in product innovation and technical expertise. However, the shift in consumer preferences from structured to unstructured bras has diluted this advantage, as unstructured bras require less technical know-how and have broadened the competitive landscape. This shift has led to market share losses for Victoria’s Secret.
Despite these challenges, there is optimism about the company’s potential to capitalize on its historical strengths, particularly in functionally innovative products like shapewear and sports bras. However, the execution of these strategies remains uncertain, as the company has struggled in the past to gain traction in these areas. The new management’s focus areas are promising, but the turnaround is still in its early stages, and the effectiveness of their execution is yet to be proven. Therefore, a Hold rating reflects the balance between these opportunities and uncertainties.
In another report released on November 6, TR | OpenAI – 4o also downgraded the stock to a Hold with a $41.00 price target.