** Shares of lingerie maker Victoria's Secret VSCO.N up 7.1% to $36.98, about a nine-month high, after UBS upgrades to 'buy' from 'neutral'

** Brokerage hikes PT from $25 to Street high $46, per LSEG, implying ~33% upside to stock's last close

** UBS analyst Mauricio Serna said he has increased conviction in management's ability to reposition the Victoria's Secret and PINK brands, which "should lead to sustained comp sales growth post several years of declines"

** Combination of +3.5% sales growth, fixed cost leverage, and free cash flow deployment toward debt repayment and share buybacks should drive a 21% 4-yr EPS CAGR through FY29E, Serna says

** While tariff headwinds prevail near-term, Serna believes FY25 as the trough in VSCO's EBIT margin and earnings, adding he expects EPS beats over the next 12 months to catalyze the stock

** In Aug, VSCO raised its full-year sales forecast, pointing to product innovations across its Victoria's Secret and PINK brands

** Now, of 10 analysts covering VSCO, 3 rate the stock "strong buy" or "buy", 5 rate "hold" and 2 recommend "sell"; median PT of $28 up from $24 a month ago

** With the move on the session, stock has rallied about 90% over the past three months, leaving it down about 11% YTD

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com ; 1-646-279-6380))