On Friday, June 7, 2024, Barclays maintained its "Underweight" rating on Victoria's Secret (NYSE:VSCO), a notable player in the lingerie retail sector. Despite

Barclays Maintains "Underweight" Rating on Victoria's Secret 


blog post cover photo

Image credit: Google Images

  • Barclays maintains its "Underweight" rating on Victoria's Secret, with a revised price target of $19, suggesting a cautiously optimistic outlook despite the stock's current trading price of $21.15.
  • Victoria's Secret reported a first-quarter net loss of $4 million, or $0.05 per share, marking a significant downturn from the previous year's profit and highlighting challenges in its financial performance.
  • The stock experienced a nearly 5% drop following the announcement of its first-quarter results, reflecting market sensitivity to the company's financial health amidst a volatile retail sector.

On Friday, June 7, 2024, Barclays maintained its "Underweight" rating on Victoria's Secret (NYSE:VSCO), a notable player in the lingerie retail sector. Despite the firm's cautious stance, it advised investors to hold onto their shares, setting a price target of $19, up from $16. This adjustment suggests a cautiously optimistic view on Victoria's Secret's financial prospects, despite the stock trading at $21.15 at the time of the announcement. Victoria's Secret, known for its wide range of lingerie and beauty products, faces stiff competition in a rapidly evolving retail landscape, making such financial assessments crucial for investors.

The backdrop to Barclays' assessment is Victoria's Secret's recent financial performance, which has been less than stellar. The company reported a first-quarter net loss of $4 million, or a loss of $0.05 per share, a significant downturn from the previous year's first quarter, where it saw a profit of $1 million, or $0.01 per share. This loss marks a challenging start to the year for the retailer, contrasting sharply with its performance during the same period in 2023. Such financial results are critical for investors to understand as they reflect the company's current operational and financial health.

Following the announcement of its first-quarter results, Victoria's Secret saw a nearly 5% drop in share prices, highlighting the market's reaction to its financial health. The stock's price movement on the day, fluctuating between a low of $21.00 and a high of $22.27 and closing at $21.15, indicates investor sensitivity to the company's performance updates. This price action is part of a broader trend over the past year, with VSCO's shares reaching a high of $30.8 and a low of $13.62, showcasing the volatility and the challenges the company faces in the retail sector.

Victoria's Secret's market capitalization, standing at approximately $1.66 billion, along with a trading volume of about 4.83 million shares, underscores the scale at which the company operates and the investor interest it garners. The financial metrics and stock performance provide a comprehensive view of the company's current market position and the challenges it faces. As such, Barclays' rating and the subsequent market reaction offer valuable insights into Victoria's Secret's financial health and its prospects in the competitive retail landscape.

Other Blogs

Nov 25, 2023 6:39 AM - Parth Sanghvi

DCF Valuation vs. Comparable Companies Analysis: Choosing the Right Valuation Method

Choosing the Right Valuation Method: DCF vs. Comparable Companies Analysis Introduction: Valuation methods play a pivotal role in determining the fair value of a company, aiding investors in making informed investment decisions. Two commonly used methods, DCF Valuation and Comparable Companies A...

blog post title

Dec 23, 2023 2:19 AM - Parth Sanghvi

Understanding the Limitations of DCF Analysis: A Guide to Overcoming Challenges

Introduction: Discounted Cash Flow (DCF) analysis stands as a cornerstone in valuing investments, yet its efficacy is contingent upon various assumptions and methodologies. While a powerful tool, DCF analysis comes with inherent limitations and challenges that investors must acknowledge to make i...

blog post title

Dec 25, 2023 2:28 AM - Parth Sanghvi

Integrating Sustainability into Valuations: Navigating ESG Factors within the Discounted Cash Flow (DCF) Model

Introduction: The investment landscape is undergoing a profound shift with a heightened emphasis on sustainability and responsible investing. In this blog post, we explore the intersection of Environmental, Social, and Governance (ESG) considerations within the Discounted Cash Flow (DCF) model, h...

blog post title


Financial Modeling Prep API provides real time stock price, company financial statements, major index prices, stock historical data, forex real time rate and cryptocurrencies. Financial Modeling Prep stock price API is in real time, the company reports can be found in quarter or annual format, and goes back 30 years in history.
2017-2024 © Financial Modeling Prep