Analyst Lorraine Hutchinson of Bank of America Securities maintained a Buy rating on Bath & Body Works (BBWI – Research Report), retaining the price target of $45.00.
Lorraine Hutchinson’s rating is based on the positive momentum Bath & Body Works is experiencing, driven by product innovation and newness, which are expected to support sales and margin recovery despite challenging market conditions. The company’s management has expressed confidence in achieving the higher end of their sales guidance, bolstered by a robust pipeline of innovations and strategic marketing efforts aimed at engaging diverse customer segments.
Additionally, Bath & Body Works’ strong free cash flow positions the company to potentially increase share buybacks beyond their current guidance, enhancing shareholder returns. The company’s significant domestic production capacity offers a competitive edge by reducing exposure to international tariffs, further supporting its financial stability and growth prospects.
Hutchinson covers the Consumer Cyclical sector, focusing on stocks such as Burlington Stores, Bath & Body Works, and Nike. According to TipRanks, Hutchinson has an average return of 5.3% and a 52.72% success rate on recommended stocks.
In another report released on March 2, TD Cowen also maintained a Buy rating on the stock with a $48.00 price target.