BofA raised the firm’s price target on Victoria’s Secret (VSCO) to $21 from $18 and keeps an Underperform rating on the shares. The company’s Q2 beat was driven by sales momentum, but the firm thinks consistent margin expansion will be difficult to achieve from here as tariff headwind will pick up “materially” in Q4 onward, the analyst tells investors in a post-earnings note. The firm is increasing its FY25 EPS view by 2% due to the Q2 beat, but reducing its FY26 estimate by 11% to reflect higher tariff pressures, the analyst noted.
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