In a report released today, Lorraine Hutchinson from Bank of America Securities reiterated a Buy rating on Bath & Body Works (BBWI – Research Report), with a price target of $45.00.
Lorraine Hutchinson has given her Buy rating due to a combination of factors that highlight Bath & Body Works’ potential for growth. The company demonstrated strong sales performance and margin improvement, which instills confidence in a return to growth in fiscal year 2025. Despite a challenging consumer environment, the introduction of new products and innovations has shown promise in driving sales and margin recovery.
Furthermore, Bath & Body Works’ fourth-quarter earnings per share exceeded expectations, driven by better-than-anticipated sales and gross margin. The company managed to achieve this without relying heavily on promotional activities, indicating effective competition during a shorter holiday shopping period. Additionally, the company’s guidance for sales growth aligns with expectations, and there is potential upside to their earnings per share guidance, supported by strong free cash flow generation. These factors contribute to the positive outlook and Buy rating for the stock.
According to TipRanks, Hutchinson is a 4-star analyst with an average return of 5.9% and a 54.06% success rate. Hutchinson covers the Consumer Cyclical sector, focusing on stocks such as Nike, TJX Companies, and Lululemon Athletica.
In another report released on February 25, Raymond James also reiterated a Buy rating on the stock with a $46.00 price target.