Victoria’s Secret Faces Sell Rating Amid Security Breach and Economic Pressures

Analyst Ike Boruchow from Wells Fargo maintained a Sell rating on Victoria’s Secret (VSCO – Research Report) and keeping the price target at $15.00.

Ike Boruchow has given his Sell rating due to a combination of factors impacting Victoria’s Secret. A recent security incident over the Memorial Day weekend led to a temporary shutdown of the company’s corporate systems, websites, and apps, which is particularly concerning during a crucial retail period. Although the e-commerce site was restored, the full impact of this incident on the company’s financials and operations remains uncertain, prompting a delay in the release of their first-quarter earnings.
Furthermore, despite pre-announced first-quarter results showing revenue and operating profit above expectations, the ongoing effects of the security breach and the unknown scale of its impact have led to a cautious outlook. Boruchow reiterates an Underweight rating, highlighting additional challenges such as tariff-induced margin pressures and increased recession risks, which could pose further headwinds for Victoria’s Secret as it attempts a turnaround. The unexpected disruption during a key sales period adds to the near-term uncertainties, justifying the Sell recommendation.

In another report released yesterday, Bank of America Securities also reiterated a Sell rating on the stock with a $20.00 price target.

Based on the recent corporate insider activity of 30 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of VSCO in relation to earlier this year.