It’s only uphill from here for Victoria’s Secret , according to UBS. The bank upgraded shares of the lingerie seller to buy from neutral. It also hiked its 12-month price target to $46 per share from $25, signaling 33% upside. Analyst Mauricio Serna pointed increased conviction in the company’s management, noting that it will be able to successfully reposition both the Victoria’s Secret and Pink brands. “This should lead to sustained comp sales growth post several years of declines, driving market sentiment higher,” he wrote. “We believe VSCO’s product pipeline and marketing initiatives should sustain the momentum into Holiday, resulting in another MSD% comp for 4Q25.” The analyst also said that there is “meaningful upside” to Wall Street’s current consensus forecasts for the company, and believes that it does not accurately reflect Victoria’s Secret’s operating leverage potential. Serna expects the company to return “solid” third-quarter results, and believes that there’s only upside ahead for the stock in the next term. VSCO YTD mountain VSCO YTD chart “While tariff headwinds prevail near-term, we see FY25 as the trough in VSCO’s EBIT margin and earnings,” he said, noting that earnings per share will shift from declines and into growth through 2026. “We believe this sequential improvement will cause the market to gain conviction on VSCO’s turnaround.” Serna believes that the company’s sales could increase by 3% year-over-year over the next two years due to stronger expectations in its North America stores alongside momentum in international sales. The company could also see stronger gross margin returns as it pulls back on promotional activity and leans more on full-price sales. Serna’s upgrade comes after Victoria’s Secret’s 2025 fashion show on Oct. 15, which Goldman Sachs called “successful” and cited as a catalyst for a modest improvement in brand engagement. Shares of Victoria’s Secret have plunged 17% this year. UBS’ updated target is approximately 33% above where the stock closed on Tuesday. ( Learn the best 2026 strategies from inside the NYSE with Josh Brown and others at CNBC PRO Live. Tickets and info here . )
