TD Cowen analyst Jonna Kim has maintained their bullish stance on BBWI stock, giving a Buy rating today.
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Jonna Kim has given his Buy rating due to a combination of factors that suggest potential upside for Bath & Body Works. The company is expected to show a strong performance in the second half of the year, with a particular emphasis on the anticipated improvement in category trends and solid sales during the semi-annual period. Despite the cautious guidance from management, the expectation of a second-quarter earnings beat is supported by these positive trends.
Moreover, the stock’s valuation appears attractive, trading at a relatively low price-to-earnings ratio compared to its peers, and the company’s minimal exposure to tariff risks further strengthens its position. The potential for new product introductions in the latter half of the year could drive sales growth above 2%, which, combined with modest market expectations, presents a favorable scenario for the stock. These factors collectively underpin Kim’s Buy rating for Bath & Body Works.
In another report released today, Citi also maintained a Buy rating on the stock with a $40.00 price target.