Goldman Sachs analyst Kate McShane maintained a Buy rating on Bath & Body Works on August 28 and set a price target of $39.00.
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Kate McShane’s rating is based on Bath & Body Works’ strong positioning to deliver value through affordable luxury products and a series of growth initiatives. Despite a recent dip in stock performance due to higher-than-expected SG&A expenses and a miss on operating margins, McShane believes the market reaction is exaggerated. The company’s gross margin exceeded expectations, and it continues to innovate with a robust pipeline of new products and collaborations.
Additionally, Bath & Body Works has shown positive sales growth driven by increased traffic and successful semi-annual sales. The valuation of the stock is seen as attractive, trading at a relatively low next twelve months price-to-earnings ratio. McShane maintains a positive outlook with a 12-month price target of $39, reflecting confidence in the company’s ability to capitalize on its strategic initiatives and market position.
According to TipRanks, McShane is a 4-star analyst with an average return of 6.2% and a 61.93% success rate. McShane covers the Consumer Cyclical sector, focusing on stocks such as Bath & Body Works, Five Below, and Advance Auto Parts.
In another report released on August 29, Wells Fargo also maintained a Buy rating on the stock with a $44.00 price target.