Bath & Body Works price target lowered to $41 from $43 at Morgan Stanley

Morgan Stanley analyst Alex Straton lowered the firm’s price target on Bath & Body Works to $41 from $43 and keeps an Overweight rating on the shares. The firm exits the Q1 report with “a more negative tilt to our Overweight rating,” arguing that a negative stock reaction post-earnings is likely a function of Q2 guidance implying quarter-over-quarter sales deceleration, a “noisier” fiscal year guidance reiteration and “less tariff insulation than hoped.” While more negative after the report, the firm still thinks Bath & Body is “an attractive relative Overweight” within the Specialty retail space, the analyst added.