Wells Fargo analyst Ike Boruchow downgraded Victoria’s Secret (VSCO) to Underweight from Equal Weight with a price target of $12, down from $25. The firm adjusted ratings in retail cut 2026 earnings estimates well below the Street to reflect current tariff headwinds and assumptions for a mild recession. Both headwinds will begin impacting numbers in the second half of 2025, the analyst tells investors in a research note. Wells says non-essential undergarments are a historically more recession-sensitive space, and it anticipates a larger headwind to Victoria’s revenues versus its retail universe. The brand has not proven an ability to sustain pricing which will be critical in the near future, contends the firm.
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