Victoria's Secret 'Store-of-the-Future' to Bolster Growth, Says Analyst
Portfolio Pulse from Nabaparna Bhattacharya
Telsey Advisory Group analyst Dana Telsey has reiterated a Market Perform rating on Victoria's Secret & Co. (VSCO) with a price target of $21. The analyst is optimistic about VSCO's 'store-of-the-future' concept, which is smaller and more technologically equipped than its previous stores. By the end of FY23, around 10% of VSCO's stores will be in this new format. The company is also expanding this concept to its top 100 locations. Telsey also praised VSCO's partnership with Amazon (AMZN), noting that there are ways to strengthen the partnership further. However, the analyst noted that the current macro backdrop and category weakness make visibility to nearer-term profitability potential more challenging.
June 29, 2023 | 4:51 pm
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NEUTRAL IMPACT
Analyst Dana Telsey is optimistic about VSCO's 'store-of-the-future' concept and its partnership with Amazon, but notes challenges to profitability due to the current macro backdrop and category weakness.
The analyst's optimism about VSCO's new store concept and its partnership with Amazon is a positive sign. However, the mention of challenges to profitability due to the current macroeconomic conditions and category weakness could potentially offset these positives, leading to a neutral short-term impact on the stock.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
Analyst Dana Telsey praised VSCO's partnership with Amazon and noted potential for further strengthening of the partnership.
The analyst's positive comments about Amazon's partnership with VSCO and the potential for further strengthening of the partnership could have a positive short-term impact on Amazon's stock. However, as the news is more focused on VSCO, the relevance and importance scores are relatively lower for Amazon.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 60