Group 1 - Victoria's Secret & Co. is recognized as a strong candidate for day trading, with a Hold rating and a price target of $20 set by Morgan Stanley's analyst Alexandra Straton [1] - The company has shown progress in its turnaround efforts, with Q2 results exceeding expectations in terms of EPS, sales, and gross margin, indicating that strategic initiatives are starting to take effect [2] - Despite positive signs, EBIT margins remain below historical averages, and Q3 guidance was softer than anticipated due to challenges such as tariff pressures, increased marketing expenses, and rising labor costs [3] Group 2 - Victoria's Secret operates as a specialty retailer of women's intimate apparel and beauty products under the Victoria's Secret, PINK, and Adore Me brand names [4]

Core Viewpoint - Victoria's Secret & Co. is experiencing a positive turnaround, with analysts raising price targets following strong Q2 FY2025 earnings that exceeded expectations [2][3]. Financial Performance - Victoria's Secret reported Q2 revenue of $1.46 billion, surpassing analyst consensus by $52.92 million [2]. - Net sales increased by 3% year-over-year, with comparable sales growing by 4% [2]. - The company raised its FY2025 net sales outlook to between $6.33 billion and $6.41 billion, up from previous guidance of $6.20 billion to $6.30 billion [3]. International Sales and Brand Performance - International sales grew by 22% year-over-year, highlighting the strength of global partnerships and brand relevance [3]. - The launch of the Body by Victoria Collection resulted in double-digit new customer growth and increased engagement [3]. Analyst Ratings and Price Targets - UBS raised the price target on Victoria's Secret from $21 to $25 while maintaining a Neutral rating [1][3]. - Barclays also increased its price target from $23 to $27, keeping a Buy rating due to strong growth in Q2 [3]. - The average price target among analysts is $23, indicating a potential downside of approximately 12.38% from current levels [4].