Morgan Stanley Has Lowered Expectations for Bath & Body Works (NYSE:BBWI) Stock Price

Key Points

• Morgan Stanley has lowered its price target for Bath & Body Works from $19.00 to $18.00, indicating a potential downside of 33.79% from the stock's last close.
• The stock is currently rated as "overweight" by Morgan Stanley, while a consensus of twelve analysts maintains a consensus rating of "Moderate Buy" with an average target price of $39.69.
• Bath & Body Works reported a quarterly earnings per share of $0.37, matching analysts' expectations, with a revenue of $1.55 billion, down 0.8% year-over-year.

Bath & Body Works (NYSE:BBWI - Get Free Report) had its price objective dropped by research analysts at Morgan Stanley from $19.00 to $18.00 in a research note issued on Friday, Marketbeat Ratings reports. The brokerage presently has an "overweight" rating on the stock. Morgan Stanley's price target points to a potential downside of 30.07% from the company's previous close.

BBWI has been the topic of several other reports. JPMorgan Chase & Co. lifted their price target on Bath & Body Works from $40.00 to $46.00 and gave the company an "overweight" rating in a research report on Monday, July 28th. UBS Group dropped their target price on Bath & Body Works from $36.00 to $32.00 and set a "neutral" rating on the stock in a report on Friday, August 29th. Wall Street Zen downgraded Bath & Body Works from a "buy" rating to a "hold" rating in a report on Saturday, August 9th. Telsey Advisory Group reissued an "outperform" rating and issued a $38.00 target price on shares of Bath & Body Works in a report on Thursday, August 28th. Finally, The Goldman Sachs Group dropped their target price on Bath & Body Works from $44.00 to $43.00 and set a "buy" rating on the stock in a report on Friday, May 30th. Twelve investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average price target of $39.69.

Bath & Body Works Stock Performance

Shares of NYSE BBWI traded down $0.28 during mid-day trading on Friday, hitting $25.74. 7,849,085 shares of the stock traded hands, compared to its average volume of 5,356,223. Bath & Body Works has a 52 week low of $24.94 and a 52 week high of $41.87. The company has a market cap of $5.31 billion, a price-to-earnings ratio of 7.64, a PEG ratio of 0.90 and a beta of 1.49. The stock has a fifty day moving average price of $30.03 and a 200-day moving average price of $29.96.

Bath & Body Works (NYSE:BBWI - Get Free Report) last released its quarterly earnings results on Thursday, August 28th. The company reported $0.37 earnings per share for the quarter, meeting the consensus estimate of $0.37. Bath & Body Works had a negative return on equity of 48.43% and a net margin of 9.88%.The company had revenue of $1.55 billion for the quarter, compared to analyst estimates of $1.55 billion. During the same period in the previous year, the company posted $0.37 earnings per share. The firm's revenue was down .8% on a year-over-year basis. Bath & Body Works has set its Q3 2025 guidance at 0.370-0.45 EPS. FY 2025 guidance at 3.350-3.600 EPS. As a group, sell-side analysts predict that Bath & Body Works will post 3.3 EPS for the current fiscal year.

Institutional Trading of Bath & Body Works

A number of hedge funds have recently bought and sold shares of BBWI. Stonehage Fleming Financial Services Holdings Ltd purchased a new stake in Bath & Body Works during the second quarter valued at $33,000. SVB Wealth LLC purchased a new stake in Bath & Body Works during the first quarter valued at $35,000. Geneos Wealth Management Inc. increased its position in Bath & Body Works by 217.7% during the first quarter. Geneos Wealth Management Inc. now owns 1,169 shares of the company's stock valued at $35,000 after acquiring an additional 801 shares during the last quarter. Parallel Advisors LLC increased its position in Bath & Body Works by 63.3% during the second quarter. Parallel Advisors LLC now owns 1,241 shares of the company's stock valued at $37,000 after acquiring an additional 481 shares during the last quarter. Finally, Golden State Wealth Management LLC increased its position in Bath & Body Works by 94.7% during the first quarter. Golden State Wealth Management LLC now owns 1,320 shares of the company's stock valued at $40,000 after acquiring an additional 642 shares during the last quarter. Hedge funds and other institutional investors own 95.14% of the company's stock.

About Bath & Body Works

Bath & Body Works, Inc is a specialty retailers and home to America's Favorite Fragrances, offering a breadth of exclusive fragrances for the body and home, including the selling collections for fine fragrance mist, body lotion and body cream, 3-wick candles, home fragrance diffusers and liquid hand soap.