Bath & Body Works Inc. (BBWI) Added To Citi 30-Day Upside Catalyst Watch List

Citi analyst Paul Lejuez reiterated a Neutral rating and $34.00 price target on Bath & Body Works Inc. (NYSE: BBWI).

The analyst comments "We are opening a 30-day positive catalyst watch ahead of BBWI’s 3Q EPS. We anticipate a 3Q EPS of $0.38, a beat (BMO 11/16) vs cons ($0.35) driven by stronger GM (+80bps vs cons +20bps) though we expect in-line sales (-3%). We believe the macro remains challenging for BBWI’s customer, making it difficult to see sales upside. But lower product costs and SG&A savings are self-help margin tailwinds in 2H23/F24, limiting downside to EPS. Given recent negative sentiment, we believe a GM/EPS beat in 3Q could drive shares higher near term. Still, we take a conservative view toward F24 given the macro. Our F24E of $3.06 is well below cons $3.52, assuming another yr of negative comps (-2%) on more pandemic period sales give-back (F23E vs F19 sales +37%). But with shares trading at 10x our F24E, 3Q upside is likely enough to move the stock higher."

For an analyst ratings summary and ratings history on Bath & Body Works Inc. click here. For more ratings news on Bath & Body Works Inc. click here.

Shares of Bath & Body Works Inc. closed at $30.77 yesterday.

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