Why Victoria's Secret Stock Soared 20% Today
Shares of lingerie retailer Victoria's Secret (NYSE: VSCO) closed 20.1% higher on Monday after J.P. Morgan initiated coverage of the company with an overweight rating and a $100 price target.
Based on its 2023 estimates for earnings before interest, taxes, depreciation, and amortization (EBITDA), J.P. Morgan calculates that Victoria's Secret stock sells for a multiple below 3, StreetInsider.com said in a report on J.P. Morgan's note. But the average stock in the specialty retail sector trades for a 2023 EBITDA multiple of 6, more than twice that.
And yet, the analyst company says Victoria's Secret has the leading share of U.S. lingerie sales, at 20%, and a 30% share of the perfume market.
Source Fool.com
