Bath & Body Works Inc. (BBWI) PT Lowered to $26 at BofA Securities

BofA Securities analyst Lorraine Hutchinson lowered the price target on Bath & Body Works Inc. (NYSE: BBWI) to $26.00 (from $32.00) while maintaining a Buy rating.

The analyst comments "BBWI lowered guidance and laid out a strategic transformation plan after its 3Q missed expectations (see report). While the magnitude of the reset caught us by surprise, we think management is taking the right steps to turn the brand. We are lowering our F25/F26 EPS ests to $2.91/$2.50 and our PO to $26, now 8x F26 EV/EBITDA (was $32 on 6x), to reflect a higher multiple on trough estimates. We view the current F26 6x P/E as punitive and expect the multiple to expand as BBWI makes progress on turning its sales and stabilizing margins. We retain our Buy rating."

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