Victoria's Secret: UBS Downgrades to Neutral, PT to $21 from $24

Victoria's Secret: UBS Downgrades to Neutral, PT to $21 from $24

UBS Group AG has revised its price target for Victoria's Secret, lowering it to $21 from $24 and maintaining a neutral rating. This adjustment comes amidst a broader review of the bank's holdings, as UBS continues to manage its portfolio in the luxury goods sector.

In a regulatory filing on July 2, 2025, UBS disclosed that it had reduced its position in Victoria's Secret by nearly 30% during the second quarter of 2025. The bank closed the quarter holding 12,000,000 shares in the company, after selling about 3.6 million shares. This move follows a steady increase in Victoria's Secret's stock price, which has seen significant growth since the company's IPO in early 2023.

UBS also made changes to its options positions. The bank increased its call options by 15% to 8.4 million shares and trimmed its put options by 7.5% to 420,000 shares. This strategic shift reflects UBS's ongoing assessment of the luxury goods market and its positioning in the sector.

UBS's decision to lower its price target for Victoria's Secret is part of a broader trend in the financial community. Institutional investors, including Vanguard and BlackRock, have been consistently updating their portfolios, with both firms increasing their holdings in Victoria's Secret during the second quarter. As of the end of June, Victoria's Secret's institutional shareholder base held around 800 million shares, with LVMH being the largest individual holder.

UBS's latest move underscores the bank's commitment to providing insightful analysis and strategic advice to its clients. The bank's neutral rating and decreased price target reflect a balanced view of Victoria's Secret's prospects, acknowledging both the company's growth potential and the risks associated with the luxury goods market.

References:
[1] https://www.ainvest.com/news/ubs-raises-pt-23-21-maintains-neutral-rating-2508/