Paul Lejuez, an analyst from Citi, maintained the Buy rating on Bath & Body Works (BBWI – Research Report). The associated price target was raised to $42.00.
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Paul Lejuez has given his Buy rating due to a combination of factors including Bath & Body Works’ recent financial performance and strategic leadership changes. The company pre-announced a first-quarter earnings per share that exceeded expectations, driven by stronger gross margins and sales growth at the high end of guidance.
The appointment of Daniel Heaf as the new CEO, with his extensive experience in the consumer and retail sectors, is expected to accelerate growth and expand margins through innovation and a focus on global expansion. Management’s commitment to maintaining strong financial guidance despite increased tariffs, along with the company’s flexible business model and domestic supply chain, further supports the positive outlook. Additionally, the company’s strategic focus on improving marketing efficiency without increasing spending is seen as a positive move towards achieving long-term financial goals.
In another report released yesterday, Piper Sandler also reiterated a Buy rating on the stock with a $39.00 price target.