UBS Group Has Lowered Expectations for Bath & Body Works (NYSE:BBWI) Stock Price

Key Points

• UBS Group cut its Bath & Body Works price target from $19 to $17 and maintained a “neutral” rating, implying roughly 7.5% downside from the stock’s $18.38 price.
• BBWI reported quarterly EPS of $0.62, far above the $0.24 consensus, while revenue of $1.51 billion slightly exceeded expectations but declined 2.3% year over year.
• Analyst sentiment remains cautious, with a consensus “Hold” rating and average price target of $22.29; near-term concerns include weak store traffic and third-quarter EPS guidance of just $0.07-$0.12.

Bath & Body Works (NYSE:BBWI - Get Free Report) had its target price dropped by stock analysts at UBS Group from $19.00 to $17.00 in a research report issued on Thursday,Benzinga reports. The firm presently has a "neutral" rating on the stock. UBS Group's target price would suggest a potential downside of 7.48% from the company's current price.

BBWI has been the subject of several other reports. Weiss Ratings upgraded shares of Bath & Body Works from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Thursday, July 9th. JPMorgan Chase & Co. boosted their price objective on shares of Bath & Body Works from $22.00 to $24.00 and gave the company a "neutral" rating in a research report on Tuesday, August 18th. Deutsche Bank Aktiengesellschaft set a $22.00 target price on Bath & Body Works in a report on Thursday. TD Cowen boosted their price target on Bath & Body Works from $20.00 to $25.00 and gave the stock a "buy" rating in a report on Thursday, May 28th. Finally, Jefferies Financial Group upped their price objective on Bath & Body Works from $22.00 to $23.00 and gave the stock a "hold" rating in a research report on Tuesday, July 28th. Four investment analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock has an average rating of "Hold" and an average price target of $22.29.

Bath & Body Works Trading Down 2.8%

Shares of NYSE:BBWI traded down $0.53 on Thursday, reaching $18.38. 2,237,662 shares of the company's stock were exchanged, compared to its average volume of 5,755,494. Bath & Body Works has a twelve month low of $14.27 and a twelve month high of $32.32. The company has a fifty day moving average of $20.36 and a 200-day moving average of $20.01. The company has a market capitalization of $3.70 billion, a price-to-earnings ratio of 5.13, a PEG ratio of 1.73 and a beta of 1.38.

Bath & Body Works (NYSE:BBWI - Get Free Report) last issued its quarterly earnings results on Wednesday, August 26th. The company reported $0.62 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.24 by $0.38. The business had revenue of $1.51 billion during the quarter, compared to analysts' expectations of $1.50 billion. Bath & Body Works had a negative return on equity of 45.34% and a net margin of 10.03%.The firm's revenue for the quarter was down 2.3% compared to the same quarter last year. During the same period in the previous year, the company posted $0.30 earnings per share. Bath & Body Works has set its Q3 2026 guidance at 0.070-0.120 EPS and its FY 2026 guidance at 2.600-2.800 EPS. As a group, equities research analysts forecast that Bath & Body Works will post 2.63 EPS for the current fiscal year.

Hedge Funds Weigh In On Bath & Body Works

Several large investors have recently bought and sold shares of the company. BlackRock Inc. bought a new stake in shares of Bath & Body Works in the second quarter worth $449,065,000. AQR Capital Management LLC lifted its holdings in Bath & Body Works by 132.5% during the 4th quarter. AQR Capital Management LLC now owns 11,445,928 shares of the company's stock worth $229,834,000 after buying an additional 6,523,960 shares during the period. Alliancebernstein L.P. lifted its holdings in Bath & Body Works by 5.8% during the 2nd quarter. Alliancebernstein L.P. now owns 5,737,796 shares of the company's stock worth $171,904,000 after buying an additional 315,738 shares during the period. California State Teachers Retirement System grew its position in shares of Bath & Body Works by 2,145.0% in the 2nd quarter. California State Teachers Retirement System now owns 5,363,801 shares of the company's stock valued at $124,065,000 after buying an additional 5,124,881 shares during the last quarter. Finally, Geode Capital Management LLC grew its position in shares of Bath & Body Works by 2.9% in the 4th quarter. Geode Capital Management LLC now owns 3,960,475 shares of the company's stock valued at $79,542,000 after buying an additional 110,602 shares during the last quarter. 95.14% of the stock is currently owned by institutional investors.

Trending Headlines about Bath & Body Works

Here are the key news stories impacting Bath & Body Works this week:

• Positive Sentiment: BBWI reported adjusted earnings of $0.62 per share, well above the $0.24 consensus estimate, while revenue of $1.51 billion modestly exceeded expectations. Digital demand for body-care products and home fragrances helped offset weaker store traffic. Bath & Body Works lifts annual profit forecast as digital demand offsets weak store traffic
• Positive Sentiment: Management raised its fiscal 2026 adjusted EPS outlook to $2.60-$2.80 from $2.40-$2.65, above the roughly $2.56 analyst consensus. The company also cited transformation progress, digital growth and a focus on cost savings and cash generation as longer-term potential catalysts. Bath & Body Works Raises Earnings Outlook on Higher Profit
• Neutral Sentiment: Some analysts argue that BBWI’s valuation and improving profitability are not fully reflected in the stock, while the broader investment debate remains centered on whether the turnaround can continue. Bath & Body Works: The Market Is Ignoring This Turnaround Story - For Now
• Negative Sentiment: Third-quarter adjusted EPS guidance of $0.07-$0.12 is substantially below the $0.27 consensus estimate. Revenue guidance of $1.6-$1.7 billion also implies limited growth, adding to concerns about weak store traffic and uneven consumer demand. Bath & Body Works results top expectations, lower third quarter earnings expected
• Negative Sentiment: Morgan Stanley lowered its BBWI price target to $20 from $22 and maintained an “equal weight” rating, signaling limited conviction in the near-term upside. Second-quarter revenue also declined 2.3% year over year. Morgan Stanley price-target update

About Bath & Body Works

Bath & Body Works, Inc is a leading specialty retailer focused on personal care, home fragrance and complementary products. Through its flagship Bath & Body Works brand, the company offers a diverse assortment of shower gels, lotions, fragrance mists, candles and home fragrance items. Its product portfolio also includes the White Barn Candle Co range of premium scented candles and diffusers. Bath & Body Works serves consumers through a combination of brick-and-mortar stores and e-commerce platforms, delivering seasonal collections, limited-edition releases and signature scent lines.

Founded in 1990 as part of Limited Brands (now L Brands), Bath & Body Works opened its first store in New Albany, Ohio, and quickly expanded across the United States.

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