Goldman Sachs analyst Kate McShane downgraded the rating on Bath & Body Works to a Hold yesterday, setting a price target of $17.00.
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Kate McShane’s rating is based on several factors, including Bath & Body Works’ recent financial performance and strategic decisions. The company reported a disappointing third-quarter performance, with earnings falling short due to an underwhelming collaboration and a challenging competitive landscape. Additionally, the company’s new business strategy has shifted growth expectations further into the future, contributing to a more cautious outlook.
Moreover, the company’s guidance for the fourth quarter was below market expectations, which has further dampened investor sentiment. These elements combined suggest that while there may be potential for future growth, the current uncertainties and strategic changes warrant a Hold rating, as investors may want to wait for clearer signs of improvement before making further commitments.
According to TipRanks, McShane is a 4-star analyst with an average return of 5.4% and a 59.63% success rate. McShane covers the Consumer Cyclical sector, focusing on stocks such as Bath & Body Works, AutoZone, and Home Depot.
In another report released today, Morgan Stanley also downgraded the stock to a Hold with a $18.00 price target.