Victoria Secret (VSXY) PT Raised to $108 at Barclays

Barclays analyst Adrienne Yih raised the price target on Victoria Secret (NYSE: VSXY) to $108.00 (from $67.00) while maintaining a Overweight rating.

The analyst comments "VSXY reported 1Q26 results that massively beat expectations with broad-based strength across categories, channels, and geos at both the VS and PINK brands. The company raised FY26 EBIT and EPS guidance by ~27% and ~35%, respectively. VSXY is entering Phase 3, what we call the Jack-in-the-Box moment. Raising Estimates and PT to $108 (from $67). Our FY26, FY27, and FY28 adj. EPS estimates are $4.60, $5.41, and $6.24 (from $3.45, $4.19, and $4.74), respectively, as we flow through the 1Q26 beat and raise our sales and GM assumptions, along with a lower share count, partially offset by SG&A deleverage. Our new PT of $108 (from $67) is based on an NTM P/E multiple of 20x (from 16x) our CY27 adj. EPS estimate of $5.41 (from $4.19). We raise our multiple 4 turns on increased confidence in VSXY’s structural improvements driving a step-function change in OM expansion, with a clear path to ~10% OM, and we see low double-digit to low-teens potential of the earnings model. We note our multiple compares to the Street NTM multiple of 20.9x."

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