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Stock impact report

Wells Fargo turns more constructive on U.S. retailers for 2026, upgrades 2 stocks [Yahoo! Finance]

Victorias Secret & Co. (VSCO) 
Company Research Source: Yahoo! Finance
2025 with improving fundamentals, supportive policy trends and clearer differentiation between winners and laggards. In its 2026 outlook, the bank upgraded two stocks and downgraded one, while reiterating that stock selection will remain critical in a still uneven consumer backdrop. At a sector level, Wells Fargo analyst Ike Boruchow said he is “lean more positive on the space entering 2026,” citing better-than-feared early holiday demand, expected benefits from tax reform—particularly in the first half of the year—and growing optionality around tariff repeal or refunds. He continues to frame the setup as a “winners/losers” market, arguing that mixed category and brand performance is likely to persist even as macro conditions stabilize. The consumer outlook is improving but remains bifurcated. Boruchow said spending patterns in 2025 were distorted by tariffs and heavy promotions, leading to episodic shopping behavior. Looking ahead, he expects tax reform to flow through to m Show less Read more
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