Alexandra Straton, an analyst from Morgan Stanley, maintained the Buy rating on Bath & Body Works (BBWI – Research Report). The associated price target remains the same with $41.00.
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Alexandra Straton’s rating is based on several strategic initiatives that Bath & Body Works is undertaking. The company is prioritizing North American sales growth under new management, which is seen as a key driver for future success. Additionally, there are promising opportunities in wholesale and international markets, although these are still in the early stages of development.
Furthermore, Bath & Body Works is focusing on enhancing its digital presence and aligning its products with purpose-driven values, which resonate well with younger consumers. Despite the potential for a prolonged turnaround, the company is positioned favorably within the Specialty Retail sector due to its higher category growth and profitability compared to peers. The company’s nimble supply chain and defensive product assortment add to its attractiveness as an investment.
According to TipRanks, Straton is a 3-star analyst with an average return of 3.4% and a 51.65% success rate. Straton covers the Consumer Cyclical sector, focusing on stocks such as On Holding AG, Lululemon Athletica, and Bath & Body Works.