Victoria's Secret (VSCO) PT Lowered to $22 at TD Cowen

TD Cowen analyst Jonna Kim lowered the price target on Victoria's Secret (NYSE: VSCO) to $22.00 (from $25.00) while maintaining a Hold rating.

The analyst commented: "Key Pockets of Strength but More Work Needed for Sustained Growth; 1Q25 EPS was mixed with worse than expected GM compression, which was offset by lower SG&A partly due to a shift in marketing spend from 1Q into 2Q. PINK apparel, beauty, & VSX outperformed, but the intimates business needs more work. Further, while traditional promotions were down, gift with purchase was up, pressuring GM, & semiannual sales this year have units down -DD%.

We remain on the sidelines despite improving trends at PINK and outperformance of Beauty and VSX as we believe there is more work to be done in the intimates category. Further, tougher comparisons in 2H25 will likely present some challenges given the huge success of the fashion show from last year. We lower our PT to $22 based on 9x FY2 P/E."

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