Jonna Kim, an analyst from TD Cowen, maintained the Buy rating on Bath & Body Works. The associated price target remains the same with $38.00.
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Jonna Kim has given his Buy rating due to a combination of factors that suggest potential growth for Bath & Body Works despite some current challenges. The company has raised its guidance slightly, indicating confidence in future performance, even though there are concerns about higher tariffs and increased SG&A expenses affecting the stock. However, Kim believes that Bath & Body Works is poised for a stronger performance in the second half of the year, driven by planned innovations and strategic initiatives.
Kim acknowledges that while there was a mixed performance in the recent quarter, with weaker traffic and a decline in body care sales, the impact of tariffs, which are significant due to the company’s manufacturing base in the US, might not be as severe in the future. The analyst anticipates that improvements in digital engagement, partnerships, and marketing efforts will enhance the company’s performance. These factors, combined with the potential for some tariff impacts to be non-repeating, support the Buy rating with an unchanged price target.
According to TipRanks, Kim is a 4-star analyst with an average return of 16.6% and a 43.24% success rate. Kim covers the Consumer Cyclical sector, focusing on stocks such as American Eagle, Gap Inc, and Bath & Body Works.
In another report released on August 21, Telsey Advisory also maintained a Buy rating on the stock with a $38.00 price target.