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

Key Points

• Telsey Advisory Group cut its price target on Bath & Body Works from $25 to $22 while keeping a market perform rating, reflecting a more cautious outlook.
• The stock has been getting mixed Wall Street attention overall, with the consensus still at Hold and an average target price of about $21.57; several other firms also recently lowered or maintained conservative ratings.
• Despite analyst caution, Bath & Body Works beat quarterly estimates with EPS of $0.32 and revenue of $1.38 billion, and it reaffirmed guidance even though revenue still fell 3.2% year over year.

Bath & Body Works (NYSE:BBWI - Get Free Report) had its price objective reduced by equities research analysts at Telsey Advisory Group from $25.00 to $22.00 in a research note issued to investors on Thursday. The firm presently has a "market perform" rating on the stock. Telsey Advisory Group's target price would suggest a potential upside of 12.45% from the company's current price.

A number of other brokerages have also recently commented on BBWI. Piper Sandler assumed coverage on shares of Bath & Body Works in a research report on Friday, May 15th. They issued a "neutral" rating and a $20.00 target price for the company. UBS Group reduced their target price on shares of Bath & Body Works from $22.00 to $19.00 and set a "neutral" rating for the company in a research report on Wednesday, May 20th. Deutsche Bank Aktiengesellschaft increased their target price on shares of Bath & Body Works from $21.00 to $22.00 and gave the company a "hold" rating in a research report on Tuesday, March 3rd. Citigroup cut shares of Bath & Body Works from a "buy" rating to a "neutral" rating and raised their price objective for the stock from $21.00 to $25.00 in a research report on Tuesday, February 17th. Finally, Raymond James Financial restated a "market perform" rating on shares of Bath & Body Works in a research report on Wednesday. Three investment analysts have rated the stock with a Buy rating and fifteen have issued a Hold rating to the stock. According to MarketBeat, Bath & Body Works has an average rating of "Hold" and an average target price of $21.57.

Bath & Body Works Stock Up 10.3%

Shares of NYSE BBWI opened at $19.56 on Thursday. The firm has a 50-day simple moving average of $18.65 and a 200-day simple moving average of $20.24. The stock has a market capitalization of $3.94 billion, a price-to-earnings ratio of 6.21, a price-to-earnings-growth ratio of 1.76 and a beta of 1.43. Bath & Body Works has a 52 week low of $14.27 and a 52 week high of $33.96.

Bath & Body Works (NYSE:BBWI - Get Free Report) last issued its earnings results on Wednesday, May 27th. The company reported $0.32 EPS for the quarter, beating analysts' consensus estimates of $0.29 by $0.03. The business had revenue of $1.38 billion during the quarter, compared to analysts' expectations of $1.36 billion. Bath & Body Works had a net margin of 8.90% and a negative return on equity of 45.60%. The company's quarterly revenue was down 3.2% compared to the same quarter last year. During the same period in the prior year, the business earned $0.49 earnings per share. 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, equities research analysts expect that Bath & Body Works will post 2.61 EPS for the current year.

Institutional Investors Weigh In On Bath & Body Works

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Geneos Wealth Management Inc. increased its position in shares of 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. Danske Bank A S purchased a new position in shares of Bath & Body Works in the third quarter valued at approximately $39,000. Global Retirement Partners LLC purchased a new position in shares of Bath & Body Works in the fourth quarter valued at approximately $31,000. Activest Wealth Management purchased a new position in shares of Bath & Body Works in the fourth quarter valued at approximately $32,000. Finally, Advisory Services Network LLC purchased a new position in shares of Bath & Body Works in the third quarter valued at approximately $48,000. 95.14% of the stock is currently owned by institutional investors and hedge funds.

Key Bath & Body Works News

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

• Positive Sentiment: Bath & Body Works topped Q1 estimates with adjusted EPS of $0.32 versus $0.29 expected and revenue of $1.38 billion versus $1.36 billion forecast, helping drive a sharp rally in the stock. Bath & Body Works beats quarterly estimates on strong demand for 'affordable luxury'
• Positive Sentiment: Management said turnaround momentum is building and reaffirmed full-year 2026 guidance, which suggests the business is performing better than feared despite lower sales year over year. Bath & Body Works Reports First Quarter Results Exceeding Guidance and Progress Against the Consumer First Formula
• Positive Sentiment: The company also guided Q2 adjusted EPS to $0.30, above the $0.20 consensus, reinforcing confidence in near-term profitability. Bath & Body Works, Inc. NYSE: BBWI Receives Consensus Recommendation of "Hold" from Brokerages
• Neutral Sentiment: Analyst sentiment remains cautious overall, with brokerages maintaining a consensus “Hold” rating on the stock.
• Negative Sentiment: Revenue still fell 3.2% year over year in the quarter, showing the turnaround is not complete and sales pressure remains a headwind for the stock.
• Negative Sentiment: Bath & Body Works also disclosed that CFO Eva Boratto will step down in June, adding some leadership uncertainty even as the company searches for an interim replacement.

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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