Victoria's Secret: UBS maintains Neutral, raises PT to $25 from $21.

Friday, Aug 29, 2025 11:36 am ET1min read

Victoria's Secret: UBS maintains Neutral, raises PT to $25 from $21.

UBS Group AG has maintained a neutral rating on Victoria's Secret, while raising its price target for the company's shares. The Swiss banking giant, known for its investment banking and wealth management services, has adjusted its price target to CHF25, up from the previous CHF21. The change in rating and target price comes amid strong financial performance and strategic growth initiatives.

In a recent report, UBS highlighted Victoria's Secret's robust financials, noting that the company achieved a revenue of 2.59 billion RMB in the first half of 2025, with a net profit of 670 million RMB. This resulted in a net profit margin of 26%, demonstrating the company's profitability and market dominance. The report also noted a slight decrease in the gross profit margin due to product upgrades in the cosmetics business, but an improvement in the marketing expense ratio due to enhanced brand equity and a balanced channel mix.

Despite the positive financial performance, UBS maintains a neutral rating, attributing this to the competitive landscape and potential challenges in the luxury goods sector. The bank has raised its profit forecasts for 2025 to 2027 by 6% to 9%, reflecting its confidence in Victoria's Secret's growth prospects. The adjusted target price of CHF100.6, up from CHF93.6, reflects this optimism.

UBS's decision to maintain a neutral rating and raise the price target underscores the company's strategic importance and growth potential in the luxury goods sector. The banking giant's insights provide valuable guidance for investors looking to capitalize on Victoria's Secret's strong performance and future growth prospects.

References:
[1] https://news.futunn.com/en/post/61364033/ubs-group-has-raised-the-target-price-for-mao-geping
[2] https://www.theglobeandmail.com/investing/markets/stocks/UBS/pressreleases/34442083/goldman-sachs-sticks-to-their-buy-rating-for-ubs-group-ag-ubs/

Victoria's Secret: UBS maintains Neutral, raises PT to $25 from $21.

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