Telsey Advisory Group Raises Victoria's Secret & Co. (NYSE:VSXY) Price Target to $90.00

Key Points

• Telsey Advisory Group raised Victoria's Secret & Co.’s price target from $71 to $90 and kept an outperform rating, implying about 63% upside from the current price.
• The company’s latest earnings report beat expectations, with EPS of $0.60 versus $0.29 expected and revenue of $1.56 billion versus $1.52 billion estimated. Victoria’s Secret also posted stronger profitability than a year ago.
• Analyst sentiment remains mixed but generally constructive: the stock now has a Moderate Buy consensus, while other firms recently upgraded or downgraded their views and the average target price stands at $66.90.

Victoria's Secret & Co. (NYSE:VSXY - Get Free Report) had its price objective boosted by investment analysts at Telsey Advisory Group from $71.00 to $90.00 in a report released on Wednesday. The brokerage currently has an "outperform" rating on the stock. Telsey Advisory Group's target price points to a potential upside of 63.19% from the company's current price.

Other research analysts also recently issued reports about the stock. Bank of America raised shares of Victoria's Secret & Co. from a "neutral" rating to a "buy" rating and increased their target price for the company from $58.00 to $68.00 in a research report on Wednesday, April 29th. UBS Group downgraded Victoria's Secret & Co. to a "neutral" rating and set a $90.00 price objective on the stock. in a research note on Wednesday. Wall Street Zen lowered Victoria's Secret & Co. from a "strong-buy" rating to a "buy" rating in a report on Sunday, April 5th. Weiss Ratings lowered Victoria's Secret & Co. from a "hold (c)" rating to a "hold (c-)" rating in a research note on Monday, April 27th. Finally, Zacks Research raised Victoria's Secret & Co. from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, March 10th. One research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and seven have assigned a Hold rating to the stock. According to data from MarketBeat.com, Victoria's Secret & Co. presently has an average rating of "Moderate Buy" and a consensus target price of $66.90.

Victoria's Secret & Co. Trading Down 29.8%

NYSE VSXY opened at $55.15 on Wednesday. The stock has a market capitalization of $4.38 billion, a price-to-earnings ratio of 29.65, a PEG ratio of 0.95 and a beta of 2.16. Victoria's Secret & Co. has a one year low of $74.26 and a one year high of $81.28. The company has a debt-to-equity ratio of 1.07, a current ratio of 1.25 and a quick ratio of 0.54. The business's fifty day moving average is $49.54 and its 200-day moving average is $51.89.

Victoria's Secret & Co. (NYSE:VSXY - Get Free Report) last posted its quarterly earnings results on Tuesday, June 2nd. The company reported $0.60 earnings per share for the quarter, beating the consensus estimate of $0.29 by $0.31. Victoria's Secret & Co. had a net margin of 2.45% and a return on equity of 33.55%. The company had revenue of $1.56 billion during the quarter, compared to analyst estimates of $1.52 billion. During the same quarter in the prior year, the business earned $0.09 earnings per share. Equities research analysts predict that Victoria's Secret & Co. will post 3.49 EPS for the current year.

Insider Activity

In related news, Director Donna James purchased 2,175 shares of the firm's stock in a transaction dated Thursday, April 2nd. The shares were purchased at an average cost of $46.23 per share, for a total transaction of $100,550.25. Following the completion of the transaction, the director directly owned 63,097 shares in the company, valued at approximately $2,916,974.31. This represents a 3.57% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available through this hyperlink. Also, Director Anne Sheehan acquired 4,842 shares of the business's stock in a transaction dated Thursday, April 2nd. The stock was purchased at an average price of $45.86 per share, with a total value of $222,054.12. Following the completion of the transaction, the director directly owned 34,261 shares of the company's stock, valued at $1,571,209.46. This trade represents a 16.46% increase in their position. The SEC filing for this purchase provides additional information. Corporate insiders own 0.52% of the company's stock.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the company. Pinpoint Asset Management Singapore Pte. Ltd. bought a new position in shares of Victoria's Secret & Co. in the fourth quarter worth $33,000. Parallel Advisors LLC boosted its stake in Victoria's Secret & Co. by 666.7% during the first quarter. Parallel Advisors LLC now owns 621 shares of the company's stock valued at $29,000 after buying an additional 540 shares during the period. Hantz Financial Services Inc. boosted its stake in Victoria's Secret & Co. by 104.3% during the fourth quarter. Hantz Financial Services Inc. now owns 811 shares of the company's stock valued at $44,000 after buying an additional 414 shares during the period. DV Equities LLC purchased a new position in Victoria's Secret & Co. during the fourth quarter worth about $49,000. Finally, Leonteq Securities AG bought a new position in Victoria's Secret & Co. in the 4th quarter worth about $54,000. 90.29% of the stock is owned by institutional investors.

Key Victoria's Secret & Co. News

Here are the key news stories impacting Victoria's Secret & Co. this week:

• Positive Sentiment: Victoria's Secret beat first-quarter earnings and revenue estimates by a wide margin, signaling stronger demand and better execution. Reuters article
• Positive Sentiment: The company raised its full-year outlook, suggesting management sees continued momentum in sales and profitability. CNBC article
• Positive Sentiment: Strong bra sales and a swing to profit are reinforcing the view that Victoria’s Secret’s turnaround strategy is working. WSJ article
• Positive Sentiment: Shares hit record highs as multiple reports highlighted the company’s outperformance and improved forecasts. Yahoo Finance article

About Victoria's Secret & Co.

Victoria’s Secret & Co is a leading designer, manufacturer and marketer of intimate apparel, beauty products and accessories for women. The company operates a portfolio of brands that includes Victoria’s Secret, renowned for its lingerie, bras and sleepwear; PINK, a line targeting younger consumers with activewear and lifestyle products; and Victoria’s Secret Beauty, offering fragrances, cosmetics and personal care items. Products are sold through retail stores as well as direct-to-consumer channels, including e-commerce platforms and mobile applications.

The origins of Victoria’s Secret date back to 1977, when founders Roy and Gaye Raymond opened the first store in San Francisco.

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