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Bath & Body Works price target lowered to $40 from $48 at Wells Fargo

Wells Fargo lowered the firm’s price target on Bath & Body Works to $40 from $48 and keeps an Overweight rating on the shares. The firm adjusted ratings in retail cut 2026 earnings estimates well below the Street to reflect current tariff headwinds and assumptions for a mild recession. Both headwinds will begin impacting numbers in the second half of 2025, the analyst tells investors in a research note.

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