BofA remains bullish on Bath & Body Works following CEO appointment

BofA analyst Lorraine Hutchinson notes Bath & Body Works announced the appointment of Daniel Heaf as CEO, replacing Gina Boswell, effective immediately. The team characterized the change as an opportunity to hasten the pace of innovation and better leverage the unique strength of its domestic and responsive supply chain. Heaf defined success as accelerating sales growth while expanding margins. The first opportunity will be changing marketing, the firm says, adding that this does not imply spending more but rather signaling the brand transformation by changing the way dollars are deployed. BofA continues to expect strong fundamentals and sales momentum to lead to further upside and reiterates a Buy rating on the shares with a price target of $45.