UBS downgraded the stock citing valuation, a decline in interest rates, and ongoing power market weakness.to Neutral, as a notable decline in interest rates and ongoing power market weakness drive our more balanced valuation upside/downside . After the stock's ca. 20% rel. outperformance YTD and the alleviation of bottomless cash pit scenarios dominating the narrative, we believe that we can start to look increasingly at the multi-year turnaround/transformation.
"While we believe mgmt has done the right things for the brand , we are less comfortable with the near-term dynamics. Guidance implies a big improvement in 2H results vs 1H and we believe there is risk that the 2H turnaround does not go according to plan."on its view that its Victoria's Secret brand may not see a turnaround.
"Our former view on the stock was based on our belief that a turnaround at VS could be successful if the brand adopted a more inclusive approach. However, with mgmt slow to implement meaningful change, and cultural norms shifting away from them, it may be too little too late for VS ."Piper upgraded the stock based on the belief that the shoe maker has been seeing solid traffic.from Neutral to OW following improving checks in the summer season & BTS.
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