TD Cowen analyst Jonna Kim has maintained their neutral stance on VSCO stock, giving a Hold rating yesterday.
Jonna Kim has given her Hold rating due to a combination of factors impacting Victoria’s Secret’s current performance and future outlook. The company’s recent earnings were in line with expectations, but the guidance for the upcoming quarter and fiscal year fell short, indicating potential challenges ahead. Despite this, the valuation appears more appealing if the broader economic conditions remain stable.
Kim notes that traffic in January and February was slower than anticipated, partly due to external factors such as weather and consumer sentiment. However, there are signs of improvement towards the end of February, and the company is undergoing a transformation under new management. The focus on marketing and merchandise changes, particularly at PINK, shows promise for future growth. Therefore, while the company is in a transition phase, the management’s strategic direction offers potential for recovery, justifying the Hold rating.
In another report released yesterday, Telsey Advisory also maintained a Hold rating on the stock with a $24.00 price target.
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