Morgan Stanley downgraded Victoria’s Secret to Underweight from Equal Weight with a price target of $15, down from $19. The firm, which anticipates sales and margin-driven Q1 EPS downside, thinks Q1 underperformance comes with a fiscal year guidance reduction that the market isn’t fully appreciating. The firm also fears Victoria’s historical competitive advantages, such as its structured bra expertise and store footprint, are less relevant amid category and consumer shopping changes, the analyst tells investors.
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