On CNBC’s “Options Action,” Mike Khouw of Optimize Advisors said that Victoria’s Secret & Co (NYSE:VSCO) is “trying to transition to a more inclusive model.”
The stock of the company, which was earlier a part of L Brands (NYSE:LB), currently trades at a discount to peers like specialty retail, Khouw mentioned.
“It’s pretty cheap to the market” and this “essentially gives us a buffer to the downside,” he added.
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Mall-based retail is still challenging, and Victoria’s Secret has closed 250 stores to date. The company could sell around 150 stores of the 830 or so that they’re still currently operating in North America, Khouw said.
The charts suggest Victoria’s Secret’s share price may be bottoming. “We think you can get $65 out of this, and the stock closed at $56.33,” he added.
Photo credit: Dwight Burdette, via Wikimedia Commons
