Analyst Jonna Kim from TD Cowen maintained a Buy rating on Bath & Body Works (BBWI – Research Report) and keeping the price target at $48.00.
Jonna Kim has given his Buy rating due to a combination of factors that highlight Bath & Body Works’ strong financial position and growth potential. The company is generating robust free cash flow and has adopted a conservative guidance approach, which is prudent given the uncertain macroeconomic environment. Additionally, the business is showing signs of momentum, particularly in the body mist and fragrance categories, which are experiencing continued growth.
Moreover, the company’s strategic initiatives, such as new collaborations and marketing efforts, are aimed at attracting a younger consumer base, further bolstering its market position. Despite some challenges in the FY25 and 1Q25 guidance, Kim believes that the underlying business fundamentals are improving. The company’s ability to leverage costs effectively and the anticipated recovery in key product categories like candles and sanitizers are expected to drive top-line growth, supporting the Buy rating with a price target of $48.
In another report released on February 28, Telsey Advisory also maintained a Buy rating on the stock with a $43.00 price target.