Shares of Victoria's Secret & Co. (VSCO) plunged 5.10% intraday on Friday as multiple analysts slashed their price targets on the lingerie retailer, citing concerns over its growth outlook and profitability.
Morgan Stanley cut its price target on VSCO to $23 from $38, maintaining an equal-weight rating. The investment bank cited slowing demand and increased promotional activity as headwinds for Victoria's Secret. In a note, Morgan Stanley analysts warned that the company's EBIT margin is likely to remain pressured in the near-term.
Jefferies also lowered its price target on VSCO to $42 from $55, while TD Cowen cut its target to $22.50 from $37. Both brokerages expressed concerns over the company's ability to sustain growth and maintain profitability amid a challenging retail environment.
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