Citi downgrades Bath & Body to Neutral on ‘weak’ core business

Citi analyst Paul Lejuez downgraded Bath & Body Works to Neutral from Buy with a price target of $25, up from $21. The firm expects the company to post a Q4 earnings beat on March 4 but says the core business “remains weak.” It thinks fiscal 2026 will mark the fifth straight year of sales declines for Bath & Body. The company also plans to launch product to Amazon in the second half of 2026, which could make stabilizing the core business “a little tougher,” the analyst tells investors in a research note. Citi believes the company needs more investments to improve traffic. It sees a balanced risk/reward at current share levels.