Investing.com -- Victoria's Secret was downgraded by both Jefferies and UBS on Wednesday after a nearly 50% post-earnings surge left analysts concluding the company's turnaround is now fairly reflected in the stock's valuation.

UBS analyst Mauricio Serna cut the stock to Neutral from Buy, raising his price target 11% to $90 from $81, while Jefferies analyst Corey Tarlowe moved to Hold from Buy with a $73 price target, up from $65.

Both firms acknowledged the strength of Victoria's Secret's operational recovery. The company posted first-quarter comparable sales growth of 13% year over year, accelerating 500 basis points sequentially, while adjusted operating income of $80 million was more than double the prior year and well above guidance. Management raised full-year adjusted EPS guidance to $4.35-$4.60.

UBS said its original thesis has played out. "Our view is VSXY's initiatives should drive comp sales growth inflection. VSXY has now delivered four consecutive quarters of robust comps," Serna wrote, adding that the stock's 47.4% jump following the Q1 print leaves limited upside to his new target.

Jefferies said the improved outlook is already priced in. "With the increased guidance, as well as the robust re-rating, we think the market is more appropriately recognizing this turnaround story," Tarlowe wrote.

Jefferies noted that its prior bull case has effectively become its base case, with an operating margin target of approximately 9% by fiscal 2028. "Our prior bull case is essentially our current base case, potentially limiting upside from here," Tarlowe added.