Morgan Stanley analyst Alexandra Straton maintains $Victoria's Secret (VSCO.US)$ with a hold rating, and adjusts the target price from $20 to $44.
According to TipRanks data, the analyst has a success rate of 62.1% and a total average return of 8.0% over the past year.
Furthermore, according to the comprehensive report, the opinions of $Victoria's Secret (VSCO.US)$'s main analysts recently are as follows:
Following the Q3 report, it was observed that the company outperformed in adjusted earnings, primarily due to spending leverage, although this was somewhat mitigated by a lower gross margin. Sales surpassed consensus expectations, showing robustness both in North America and internationally. However, it's noted that the company's margins are still being impacted by increased promotional activities and transportation expenses.
Following Victoria's Secret's third quarter performance exceeding expectations, near-term revenue trends are mildly impacted by broader economic challenges, potentially overshadowing the company's brand rehabilitation initiatives. Analysts note that despite a non-linear path to recovery, the long-term prospects are viewed as stable, with the company positioned to regain previous sales levels and improve margins.
The latest quarterly results from Victoria's Secret have offered numerous positive indicators, including growth in North America, gains in market share, and expansion of PINK apparel. However, these were partially tempered by a minor shortfall in gross margin. Notably, the company is now experiencing growth in operating income, and management has indicated that the momentum seen in Q3 persisted through the Black Friday and Cyber Monday period.
Note:
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