Bath & Body Works (NYSE:BBWI) Price Target Cut to $25.00 by Analysts at Wells Fargo & Company

Key Points

• Wells Fargo cut Bath & Body Works’ price target from $29 to $25 while keeping an overweight rating, implying about 23.1% upside from the prior close.
• Analyst sentiment remains cautious overall: the stock has a consensus Hold rating and a $21.57 average price target, with several firms recently trimming or setting targets in the low-$20s.
• Bath & Body Works recently beat Q1 earnings and revenue expectations and reaffirmed its full-year outlook, but sales were still down year over year, highlighting ongoing pressure in the business.

Bath & Body Works (NYSE:BBWI - Get Free Report) had its price objective dropped by equities research analysts at Wells Fargo & Company from $29.00 to $25.00 in a note issued to investors on Thursday,Benzinga reports. The firm currently has an "overweight" rating on the stock. Wells Fargo & Company's price objective points to a potential upside of 23.10% from the company's previous close.

Several other analysts have also issued reports on the stock. Raymond James Financial reiterated a "market perform" rating on shares of Bath & Body Works in a research note on Wednesday. Piper Sandler initiated coverage on shares of Bath & Body Works in a research report on Friday, May 15th. They issued a "neutral" rating and a $20.00 price objective for the company. Barclays set a $23.00 target price on Bath & Body Works in a research note on Thursday. UBS Group reduced their target price on Bath & Body Works from $22.00 to $19.00 and set a "neutral" rating for the company in a report on Wednesday, May 20th. Finally, Deutsche Bank Aktiengesellschaft increased their price target on Bath & Body Works from $21.00 to $22.00 and gave the company a "hold" rating in a research report on Tuesday, March 3rd. Three equities research analysts have rated the stock with a Buy rating and fifteen have assigned a Hold rating to the company's stock. According to MarketBeat.com, the company has a consensus rating of "Hold" and a consensus price target of $21.57.

Bath & Body Works Stock Performance

BBWI traded up $0.86 during midday trading on Thursday, reaching $20.31. 1,053,190 shares of the company were exchanged, compared to its average volume of 5,718,384. The company has a market cap of $4.09 billion, a price-to-earnings ratio of 6.42, a price-to-earnings-growth ratio of 1.76 and a beta of 1.43. Bath & Body Works has a one year low of $14.27 and a one year high of $33.96. The company's fifty day moving average price is $18.65 and its 200 day moving average price is $20.24.

Bath & Body Works (NYSE:BBWI - Get Free Report) last announced its earnings results on Wednesday, May 27th. The company reported $0.32 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.29 by $0.03. Bath & Body Works had a negative return on equity of 45.60% and a net margin of 8.90%.The company had revenue of $1.38 billion for the quarter, compared to analysts' expectations of $1.36 billion. During the same quarter in the previous year, the firm earned $0.49 earnings per share. Bath & Body Works's quarterly revenue was down 3.2% on a year-over-year basis. Bath & Body Works has set its Q2 2026 guidance at 0.300-0.300 EPS and its FY 2026 guidance at 2.400-2.650 EPS. As a group, sell-side analysts anticipate that Bath & Body Works will post 2.61 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Bath & Body Works

Several large investors have recently modified their holdings of BBWI. Segall Bryant & Hamill LLC raised its holdings in shares of Bath & Body Works by 17.7% in the 1st quarter. Segall Bryant & Hamill LLC now owns 327,089 shares of the company's stock worth $6,107,000 after purchasing an additional 49,100 shares during the period. Bank of America Corp DE grew its holdings in Bath & Body Works by 26.2% during the first quarter. Bank of America Corp DE now owns 2,050,414 shares of the company's stock valued at $38,281,000 after purchasing an additional 425,248 shares during the period. South Dakota Investment Council increased its position in Bath & Body Works by 4.2% in the first quarter. South Dakota Investment Council now owns 1,756,048 shares of the company's stock worth $32,785,000 after buying an additional 71,255 shares during the last quarter. Amundi raised its stake in shares of Bath & Body Works by 33.3% in the first quarter. Amundi now owns 78,203 shares of the company's stock valued at $1,460,000 after buying an additional 19,519 shares during the period. Finally, EverSource Wealth Advisors LLC raised its stake in shares of Bath & Body Works by 47.7% in the first quarter. EverSource Wealth Advisors LLC now owns 8,938 shares of the company's stock valued at $167,000 after buying an additional 2,885 shares during the period. Hedge funds and other institutional investors own 95.14% of the company's stock.

Bath & Body Works News Roundup

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

• Positive Sentiment: Bath & Body Works beat Q1 earnings and sales expectations, with results coming in above guidance and helping drive renewed investor confidence.
• Positive Sentiment: The company reaffirmed its full-year outlook, easing fears that the business was deteriorating faster than expected.
• Positive Sentiment: Analyst and market commentary highlighted valuation support and possible growth catalysts, including expansion opportunities and dividend appeal.
• Neutral Sentiment: Brokerages remain cautious overall, with consensus still centered around a “Hold” rating after recent updates.
• Negative Sentiment: Revenue remains under pressure, with Q1 sales down year over year as Bath & Body Works continues its turnaround effort.
• Negative Sentiment: Price target cuts from Goldman Sachs and Telsey Advisory Group suggest analysts are still tempering expectations for near-term upside.

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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