Goldman Sachs has revised its price target for Victoria’s Secret (VSCO, Financial), reducing it from $19 to $15, while maintaining a Sell rating on the stock. This adjustment comes as the firm adopts a more cautious view on the U.S. apparel and softlines sector, anticipating potential challenges due to broader economic conditions.
In a recent analysis, Goldman's economists have significantly lowered the U.S. GDP growth forecast. They now predict a growth rate of 0.5% for 2025, down from a previous estimate of 2.5% for 2024, measured on a Q4-to-Q4 basis. Furthermore, the likelihood of a recession has been assessed at 45%.
Although Goldman Sachs has not fully integrated a recession scenario into its estimates, there is a concern that market volatility, escalating geopolitical tensions, and increased tariff rates could negatively impact company earnings. This series of factors has contributed to a more conservative outlook on the market.
