Close

JPMorgan Cuts Bath & Body Works (BBWI) to Neutral on Multi-Year Model 'Reset'

June 29, 2022 8:51 AM EDT
Get Alerts BBWI Hot Sheet
Price: $37.36 -2.83%

Rating Summary:
    11 Buy, 2 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 18 | Down: 53 | New: 12
Join SI Premium – FREE

Get instant alerts when news breaks on your stocks. Claim your 1-week free trial to StreetInsider Premium here.

JPMorgan analyst Matthew Boss slashed the rating on Bath & Body Works (NYSE: BBWI) to Neutral from Overweight with a $30.00 per share price target (down from $63.00).

The downgrade move comes after Boss cut the Q2 EPS estimate to $0.49, which is much lower than the Street consensus of $0.64. The FY23 EPS forecast goes to $3.30 while consensus is at $4.90.

“We see our below-Consensus model as a reasonable baseline for the multi-year “E”, noting incremental downside potential risk in a FY23 consumer-led recession scenario,” Boss wrote in a note.

The analyst further explained:

“We see 2Q AUR tracking down 4% Y/Y by our work (commensurate with 1Q and below mgmt’s sequential improvement expectation) with our model now embedding - 4% AUR contraction for FY22 – below mgmt's “Flat” 2022 AUR growth Y/Y assumption (see our full analysis and fieldwork below) and raising risk to mgmt’s +low-single-digit 2Q and FY22 revenue growth forecasts YOY.”

As a result, shares of the company are down over 4% in pre-market Wednesday.

By Senad Karaahmetovic



Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In





Related Categories

Analyst Comments, Analyst EPS Change, Analyst PT Change, Downgrades, Hot Downgrades, Hot List

Related Entities

JPMorgan, Senad Karaahmetovic