Bath & Body Works (NYSE:BBWI) Given New $18.00 Price Target at Morgan Stanley

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 target price reduced by research analysts at Morgan Stanley from $19.00 to $18.00 in a report released on Friday,Benzinga reports. The brokerage currently has an "overweight" rating on the stock. Morgan Stanley's target price would indicate a potential downside of 33.79% from the company's previous close.

Several other equities analysts also recently issued reports on the company. Piper Sandler set a $39.00 price target on Bath & Body Works and gave the stock an "overweight" rating in a research report on Thursday, May 15th. Telsey Advisory Group reaffirmed an "outperform" rating and issued a $38.00 price target on shares of Bath & Body Works in a research note on Thursday, August 28th. Citigroup decreased their price target on shares of Bath & Body Works from $42.00 to $40.00 and set a "buy" rating on the stock in a research note on Tuesday, August 19th. JPMorgan Chase & Co. raised their price target on shares of Bath & Body Works from $40.00 to $46.00 and gave the company an "overweight" rating in a research note on Monday, July 28th. Finally, Wall Street Zen lowered shares of Bath & Body Works from a "buy" rating to a "hold" rating in a research note on Saturday, August 9th. Twelve equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat, Bath & Body Works presently has a consensus rating of "Moderate Buy" and an average target price of $39.69.

Bath & Body Works Stock Down 2.5%

NYSE BBWI traded down $0.69 during trading hours on Friday, hitting $27.19. 1,767,531 shares of the company were exchanged, compared to its average volume of 5,292,372. The stock has a 50-day moving average price of $30.43 and a 200 day moving average price of $30.26. Bath & Body Works has a 52 week low of $24.94 and a 52 week high of $41.87. The stock has a market cap of $5.61 billion, a PE ratio of 8.07, a price-to-earnings-growth ratio of 0.96 and a beta of 1.49.

Bath & Body Works (NYSE:BBWI - Get Free Report) last released its earnings results on Thursday, August 28th. The company reported $0.37 EPS for the quarter, meeting analysts' consensus estimates of $0.37. The firm had revenue of $1.55 billion for the quarter, compared to analysts' expectations of $1.55 billion. Bath & Body Works had a negative return on equity of 48.43% and a net margin of 9.88%.The company's quarterly revenue was down .8% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.37 earnings per share. 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 anticipate that Bath & Body Works will post 3.3 earnings per share for the current year.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the stock. T. Rowe Price Investment Management Inc. grew its position in Bath & Body Works by 7.6% in the first quarter. T. Rowe Price Investment Management Inc. now owns 11,016,767 shares of the company's stock valued at $334,029,000 after acquiring an additional 781,681 shares during the last quarter. JPMorgan Chase & Co. increased its holdings in shares of Bath & Body Works by 11.5% during the second quarter. JPMorgan Chase & Co. now owns 7,080,106 shares of the company's stock valued at $212,120,000 after acquiring an additional 733,000 shares in the last quarter. Victory Capital Management Inc. raised its holdings in shares of Bath & Body Works by 14,732.0% in the first quarter. Victory Capital Management Inc. now owns 6,798,108 shares of the company's stock valued at $206,119,000 after purchasing an additional 6,752,274 shares during the last quarter. Alliancebernstein L.P. grew its stake in Bath & Body Works by 5.8% in the 2nd quarter. Alliancebernstein L.P. now owns 5,737,796 shares of the company's stock valued at $171,904,000 after purchasing an additional 315,738 shares during the period. Finally, Cooper Creek Partners Management LLC lifted its position in shares of Bath & Body Works by 42.7% during the 2nd quarter. Cooper Creek Partners Management LLC now owns 5,409,919 shares of the company's stock valued at $162,081,000 after buying an additional 1,619,276 shares during the last quarter. Institutional investors own 95.14% of the company's stock.

Bath & Body Works Company Profile

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.

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