In a report released today, Mauricio Serna from UBS reiterated a Buy rating on Victoria’s Secret, with a price target of $46.00.
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Mauricio Serna has given his Buy rating due to a combination of factors including a strong performance in the third quarter and positive expectations for the fourth quarter. The analysis suggests that Victoria’s Secret has shown solid sales momentum, with a notable increase in U.S. searches and website visits, indicating a positive trend in consumer interest. This momentum is expected to lead to a modest beat in Q3 sales and earnings per share, as well as a slight increase in FY25 earnings guidance.
Additionally, the valuation analysis supports a Buy rating, with a price target of $46 based on a multiple of 14 times the estimated FY27 earnings per share. This target aligns with the company’s peers in terms of price-to-earnings, price-to-sales, and free cash flow yield. The sentiment around the stock appears balanced, with room for improvement, and the stock is expected to outperform over the next twelve months, justifying the Buy recommendation.
Serna covers the Consumer Cyclical sector, focusing on stocks such as Signet Jewelers, Victoria’s Secret, and Buckle. According to TipRanks, Serna has an average return of 2.2% and a 43.33% success rate on recommended stocks.