BofA lowered the firm’s price target on Bath & Body Works to $26 from $32 and keeps a Buy rating on the shares. Noting that the company lowered guidance and laid out a strategic transformation plan after its Q3 results missed expectations, the firm says the “magnitude of the reset caught us by surprise,” but adds that it thinks management is taking the right steps to turn the brand. The firm views the current valuation as “punitive” and expects the multiple to expand as Bath & Body makes progress turning sales and stabilizing margins, the analyst added.
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