Bank of America Securities analyst Lorraine Hutchinson has reiterated their bullish stance on BBWI stock, giving a Buy rating yesterday.
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Lorraine Hutchinson’s rating is based on Bath & Body Works’ robust sales growth and solid margin performance, which she believes justifies a higher valuation multiple. The company’s second-quarter earnings per share met expectations, and net sales reached the upper end of guidance, driven by strong performance in the Soaps & Sanitizers and Home Fragrance categories. Despite tariff pressures, the company has managed to maintain a positive outlook for future sales and earnings, with a slight upward revision in expected earnings per share.
Furthermore, Bath & Body Works continues to innovate and attract customers with new product launches, such as the Summerween collection, and strategic collaborations, including a significant partnership with Disney. These initiatives are expected to bolster sales in the latter half of the fiscal year. While there are some increases in selling, general, and administrative expenses due to investments in digital and marketing, these are seen as necessary steps to enhance the brand’s value proposition and customer engagement.
According to TipRanks, Hutchinson is a 4-star analyst with an average return of 7.5% and a 55.48% success rate. Hutchinson covers the Consumer Cyclical sector, focusing on stocks such as Gap Inc, Nike, and Ulta Beauty.
In another report released yesterday, TD Cowen also maintained a Buy rating on the stock with a $38.00 price target.