Victoria's Secret stock has been riding high on a company turnaround, and a Wall Street firm thinks GLP-1s could offer a fresh tailwind -- even if management hasn't spotted the impact yet.
Needham analyst Tom Nikic initiated coverage of the lingerie retailer on Friday with a Buy rating and $106 price target, betting on long-term upside from the weight-loss drug trend.
"As consumers' body types change, they may need to trade down into smaller sizes, and they might want to buy clothing that makes them feel 'sexier,' which could potentially drive them towards Victoria's Secret," he wrote in a note.
CEO Hillary Super said in an earnings call in June that while GLP-1 adoption has had a "minimal impact" on sales so far, the company will continue to monitor the trend.
Nikic added that Victoria's Secret is in the early stages of a "compelling" multi-year turnaround, which began when Super took the helm on Sept. 9, 2024. Since that day, the stock has risen about 284%, and is up 63% this year. As the company has continued to pull back its promotions and progress with its transformation, Nikic sees a future strong beat-and-raise story.
The company's core underwear business used to hold over 30% of the intimate market share in North America, but recently dropped to 20%, Nikic wrote. Winning back this lost market share -- along with growing the company's PINK, swim, and activewear lines -- could drive annual sales growth in the mid to high single-digit percentage range over the next few years.
Earnings per share could also reach $9.50 in five years, roughly double the company's current 2026 forecast of $4.45 to $4.70, according to Nikic.
Victoria's Secret stock tumbled nearly 13% in September following weaker-than-expected fiscal second quarter revenue. Jefferies analyst Corey Tarlowe previously said the stock reaction was "shaped more by expectations than reported results."
The price drop, however, didn't shake Nikic. He wrote the company was "one of the best-performing specialty retailers" in the first half of 2026.
Of the 15 analysts polled by FactSet who track Victoria's Secret, 53% recommend buying shares, while 40% have a Hold rating.
When Super joined Victoria's Secret, she also revived its fashion show. Traditionally held each October, the event has routinely generated massive buzz. Since its return, the stock has rallied every October, rising nearly 18% in 2024 and around 30% in 2025. The next fashion show is slated for this Sunday.
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