UBS Reiterates Neutral Rating on Bath & Body Works Inc. (BBWI)

UBS analyst Jay Sole reiterated a Neutral rating and $36.00 price target on Bath & Body Works Inc. (NYSE: BBWI).

The analyst commented, "We believe BBWI has multiple LT global growth opportunities given its position as a leader within its core categories. However, we see limited upside to the Street's FY25 EPSe for two reasons: 1) Growth rates for BBWI's core categories are lackluster; and 2) BBWI has few levers to drive margin upside, in our view. Plus, execution risk from BBWI's CEO transition could present an additional risk over the near-term. We believe the stock's P/E will stay rangebound until a catalyst emerges that changes the market's view of its LT earnings potential. We see potential that Mr. Heaf's initiatives to expand BBWI's distribution footprint beyond its own channels could positively contribute to BBWI's sales growth. However, we note these plans are in very early days. We'll look for more details and signals of progress with respect to these initiatives before potentially reconsidering our view. We doubt this will happen for at least 2-3 quarters, thus continue to rate BBWI Neutral."

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 $28.58 yesterday.

You May Also Be Interested In

• JD.com (JD) Reiterated at Buy by Benchmark Amid Earnings Recovery
• Movano (MOVE) Misses Q2 EPS by 195c
• UBS Reiterates Buy Rating on NVIDIA (NVDA), Expects Q2 Revenue Beat