Telsey Advisory Group upgraded Victoria's Secret & Co. (VSCO) from "Market Perform" to "Outperform." Analyst Dana Telsey also raised the stock's price target significantly. The new target is $66, up 32% from the previous $50.
The upgrade signals strong confidence in the retailer's future performance, based on an enhanced business trajectory. Telsey highlighted the strengthening performance of the PINK segment. This segment resonates well with a younger demographic.
The firm also pointed to growth opportunities within the beauty segment. These opportunities are expected to help drive margin recovery and earnings growth for Victoria's Secret.
Following the news, shares of VSCO rose 2% in premarket trading.