In a report released today, Jonna Kim from TD Cowen maintained a Buy rating on Bath & Body Works, with a price target of $18.50.
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Jonna Kim has given his Buy rating due to a combination of factors that suggest potential for Bath & Body Works to transform and grow in the future. Despite a challenging start to the holiday season and a conservative outlook for the near term, the company is undertaking strategic initiatives aimed at modernizing its brand and connecting with younger consumers. These initiatives include exiting certain product categories and simplifying their assortment, which are expected to streamline operations and focus on core strengths.
Additionally, Bath & Body Works plans to enter the Amazon marketplace, which could serve as a significant customer acquisition tool and align with industry trends. Although there are risks associated with these changes, such as potential short-term sales declines, the company’s inexpensive valuation and strategic realignment offer upside potential if executed successfully. Jonna Kim believes that with the right leadership, Bath & Body Works has the capacity to revitalize its brand and achieve a turnaround, justifying the Buy rating.
According to TipRanks, Kim is a 3-star analyst with an average return of 11.9% and a 43.59% success rate. Kim covers the Consumer Cyclical sector, focusing on stocks such as Bath & Body Works, American Eagle, and Gap Inc.
In another report released today, Bank of America Securities also maintained a Buy rating on the stock with a $32.00 price target.