Bath & Body Works, the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst Alexandra Straton from Morgan Stanley downgraded the rating on the stock to a Hold and gave it a $18.00 price target.
TipRanks Cyber Monday Sale
- Claim 60% off TipRanks Premium for data-backed insights and research tools you need to invest with confidence.
- Subscribe to TipRanks' Smart Investor Picks and see our data in action through our high-performing model portfolio - now also 60% off
Alexandra Straton’s rating is based on a combination of factors that suggest Bath & Body Works may face challenges in achieving consistent growth and margin expansion. The company’s recent third-quarter results and strategic plans have reinforced concerns that its path to sustainable growth is not only extended but may also be permanently unattainable.
Straton points out that Bath & Body Works is likely to encounter structural headwinds that could lead to ongoing revenue declines and margin erosion. The need for significant investments and the current low growth trajectory further imply that profitability might continue to deteriorate. As a result, the price target has been adjusted to $18, and the stock has been downgraded to an Equal-weight rating.
In another report released today, Barclays also maintained a Hold rating on the stock with a $18.00 price target.