Needham initiates Victoria's Secret and Urban Outfitters at Buy, targets $106 and $100

what happened

Analysts at Needham began covering shares of Victoria's Secret and Urban Outfitters with a Buy rating. The target for Victoria's Secret is $106, which sits 17.1% above the October 15 close of $90.53. For Urban Outfitters the target is $100, or 14.4% above the $87.40 close. TradingView reports the information, citing data from Benzinga.

The Victoria's Secret note highlights a leadership change, including the appointment of Hillary Super as chief executive, and five consecutive quarters of unit growth. For Urban Outfitters, Needham pointed to a recovery at the namesake brand, room for margin improvement, and growth at Nuuly and Free People.

why it matters

For the broader market this is a single broker's opinion, so the effect is limited. Still, a first positive rating can draw investor attention to apparel and intimates retail. The key arguments focus on operational recovery and sales momentum, which market participants will likely check against company reports.

tags

instruments