Analysts Cut Bath & Body Works' Price Target Post Outlook Revision

Analysts Cut Bath & Body Works' Price Target Post Outlook Revision
  • Telsey Advisory Group analyst Dana Telsey reiterated Outperform rating on Bath & Body Works Inc BBWI and lowered the price target to $40 from $60 (23% upside)
  • The analyst said the company’s move in lowering Q2 guidance reflected a challenging macro environment and unprecedented inflation levels weighing on consumer sentiment and demand.
  • Dana believes traffic trends have sequentially declined from Q1, and the management feels lower-income consumers are heavily impacted by inflation and have become more price sensitive.
  • While the moderated outlook is somewhat disappointing, the analyst believes modest stock reaction is evidence that the market had already contemplated the potential softness.
  • Dana noted that the company is poised for incremental growth with a solid pipeline of new launches planned in FY22 and increased investments in infrastructure and systems.
  • Also ReadWhy Bath & Body Works Stock Is Falling
  • Baird analyst Mark Altschwager maintained Outperform rating on the company and lowered the price target to $40 from $50.
  • B. Riley Securities analyst Susan Anderson reiterated a Buy rating and reduced the price target from $67 to $44 (35% upside).
  • Morgan Stanley analyst Kimberley Greemberger maintained an Overweight rating and raised the price target to $66 (102% upside) from $64.
  • BMO Capital analyst Simeon Siegel maintained an Outperform rating on the shares and lowered the price target to $45 from $65 (38% upside).
  • Raymond James analyst Olivia Tong maintained a Strong Buy rating on the shares and lowered the price target to $43 from $45 (32% upside).
  • Citigroup analyst Paul Lejuez maintained a Buy and reduced the price target from $54 to $42 (29% upside).
  • Price Action: BBWI shares are trading higher by 4.87% at $32.61 on the last check Thursday.

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