In a report released yesterday, Alexandra Straton from Morgan Stanley maintained a Buy rating on Bath & Body Works, with a price target of $41.00.
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Alexandra Straton’s rating is based on a combination of factors that suggest a cautious optimism for Bath & Body Works. Despite current challenges, such as sluggish topline growth and a volatile macroeconomic environment, Straton sees potential in the company’s strategic initiatives and its ability to navigate these hurdles. The company’s valuation remains low, which could present a buying opportunity if management successfully executes its growth strategies.
Straton acknowledges that while recent earnings did not meet all expectations, there were positive signs such as slight gross margin expansion and strategic investments in new stores. These efforts, combined with Bath & Body Works’ strong domestic supply chain and defensive product assortment, could position the company well for future growth. Therefore, the Buy rating reflects a belief in the company’s long-term potential despite short-term uncertainties.
According to TipRanks, Straton is a 4-star analyst with an average return of 5.0% and a 54.69% success rate. Straton covers the Consumer Cyclical sector, focusing on stocks such as On Holding AG, Tapestry, and Gap Inc.
In another report released yesterday, Bank of America Securities also reiterated a Buy rating on the stock with a $40.00 price target.