Shares of Victoria’s Secret (VSCO) are down due to a security issue that caused its U.S. website to go offline and led to the temporary suspension of several services. Interestingly, the women’s intimates retailer posted a message saying that this was done as a precaution, but hasn’t confirmed whether it was a cyberattack. Nevertheless, Victoria’s Secret says that it is working around the clock to bring everything back online, but has not given a clear timeline for when things will return to normal.
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Because of the issue, customer service is currently unavailable, and some in-store services, such as returning online orders, are not working. In addition, the company is still trying to fulfill the orders that were placed before Monday, while also extending return deadlines and coupon expiration dates for affected customers. It is unclear if stores outside the U.S. are also affected, but the company’s UK website was still working as of Thursday. Regardless, the company’s issues have caused Wells Fargo analysts, led by four-star rated Ike Boruchow, to reiterate their Sell rating and $15 price target.
In fact, Wells Fargo contacted Victoria’s Secret stores in different states and found that employees had mixed answers about when online systems might be fixed. Some said that online ordering could be down for one or two more days, which would mean a total outage of four to five days. This is especially important because it’s happening around the Memorial Day weekend, which is a big time for online shopping. Therefore, Wells Fargo said that this unexpected disruption adds to the challenges Victoria’s Secret is already facing during its turnaround efforts.
Is VSCO Stock a Good Buy?
Overall, analysts have a Hold consensus rating on VSCO stock based on four Buys, four Holds, and three Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average VSCO price target of $23.14 per share implies 14.2% upside potential.
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