UBS has reiterated its Buy recommendation on Victoria's Secret & Co. (NYSE: VSCO), maintaining a $73.00 price target. The firm says its analysis shows the retailer preserved strong sales momentum in the fourth quarter, with that positive trend carrying into the first quarter of fiscal 2026.
In its assessment, UBS forecasts a 12-cent beat to fourth-quarter earnings per share. The brokerage also expects that Victoria's Secret will issue fiscal 2026 earnings per share guidance above the current consensus estimate of $3.02. UBS notes that such guidance is likely to result in upward revisions from other analysts on the Street.
UBS cautions, however, that the market has already priced in a robust fiscal 2026 outlook. That existing bullish sentiment constrains potential expansion in the company's price-to-earnings multiple around the time of the earnings release. The options market is currently implying a potential move of plus or minus 14.5% around the earnings event, compared with a historical average move of 8.0%.
Despite that options-implied swing, UBS expects actual volatility after the earnings release to be smaller than the historical plus or minus 8.0% range.
Recent company results have reinforced a more positive tone among some analysts. Victoria's Secret reported third-quarter 2025 results that exceeded forecasts, posting a loss per share of $0.27 versus an expected loss of $0.59 - a 54.24% positive surprise. Revenue for the quarter came in at $1.47 billion, ahead of the $1.41 billion analysts had forecast.
Following that release, Jefferies raised its price target on the stock to $65 from $57 while keeping a Buy rating, citing discussions with company executives that highlighted key strategic priorities. UBS itself previously lifted its price target to $60 from $46 and also retained a Buy rating, attributing its reassessment to the successful repositioning of both the Victoria's Secret and PINK brands.
Those price-target increases and the stronger-than-expected quarterly results signal greater analyst confidence in the company’s recent performance and strategic direction. UBS's latest reiteration builds on that sentiment while also warning that a strong consensus outlook limits the room for valuation multiple expansion around earnings.
Summary of key numerical points cited by UBS and in recent results:
- UBS price target: $73.00 with Buy rating.
- UBS expects a 12-cent fourth-quarter EPS beat.
- Consensus fiscal 2026 EPS estimate referenced: $3.02; UBS expects guidance above this level.
- Options market-implied move around earnings: plus or minus 14.5%; historical average move: 8.0%.
- Q3 2025 actual results: EPS loss of $0.27 versus expected loss of $0.59 (54.24% positive surprise); revenue $1.47 billion versus forecast $1.41 billion.
- Jefferies price target moved to $65 from $57, maintaining Buy; UBS earlier moved its price target to $60 from $46, maintaining Buy.
Investors evaluating Victoria's Secret will weigh the firm's continued sales momentum and the likelihood of stronger fiscal 2026 guidance against a market that already reflects elevated expectations. UBS's position signals confidence in the company's trajectory while acknowledging limited immediate upside from multiple expansion around earnings.