Victoria’s Secret downgraded to Underweight from Neutral at JPMorgan

JPMorgan downgraded Victoria’s Secret to Underweight from Neutral with a price target of $15, down from $22, following the Q4 report. The company’s sales growth and gross profit dollars have declined sequentially in an increasingly cautious macroeconomic backdrop, hindering the brand’s growth and profitability profile, the analyst tells investors in a research note. The firm sees Victoria’s Secret’s margins “constrained” in the next 12-24 months with limited visibility to a return to topline growth.