The Goldman Sachs Group Lowers Bath & Body Works (NYSE:BBWI) Price Target to $23.00

Key Points

• Goldman Sachs lowered its price target on Bath & Body Works to $23 from $26 while keeping a neutral rating, implying about 17.6% upside from the prior close.
• Wall Street remains cautious overall, with the stock carrying a consensus “Hold” rating and a consensus target price of $21.79 based on MarketBeat data.
• Recent results were mixed: Bath & Body Works beat quarterly EPS and revenue estimates and raised confidence with guidance, but revenue still fell 3.2% year over year and analyst sentiment remains restrained.

Bath & Body Works (NYSE:BBWI - Get Free Report) had its target price dropped by analysts at The Goldman Sachs Group from $26.00 to $23.00 in a report released on Thursday,Benzinga reports. The brokerage currently has a "neutral" rating on the stock. The Goldman Sachs Group's price objective would suggest a potential upside of 17.56% from the stock's previous close.

A number of other equities analysts have also weighed in on the stock. UBS Group decreased their price objective on shares of Bath & Body Works from $22.00 to $19.00 and set a "neutral" rating for the company in a report on Wednesday, May 20th. Deutsche Bank Aktiengesellschaft boosted their price objective on shares of Bath & Body Works from $21.00 to $22.00 and gave the stock a "hold" rating in a report on Tuesday, March 3rd. Barclays set a $23.00 target price on shares of Bath & Body Works in a research report on Thursday. TD Cowen cut their price objective on shares of Bath & Body Works from $26.00 to $20.00 and set a "buy" rating for the company in a research report on Monday, May 18th. Finally, Citigroup downgraded shares of Bath & Body Works from a "buy" rating to a "neutral" rating and boosted their price objective for the company from $21.00 to $25.00 in a research report on Tuesday, February 17th. Three equities research analysts have rated the stock with a Buy rating and fifteen have issued a Hold rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus target price of $21.79.

Bath & Body Works Stock Performance

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

Bath & Body Works (NYSE:BBWI - Get Free Report) last announced its quarterly earnings data on Wednesday, May 27th. The company reported $0.32 earnings per share for the quarter, topping analysts' consensus estimates of $0.29 by $0.03. Bath & Body Works had a net margin of 8.90% and a negative return on equity of 45.60%. The company had revenue of $1.38 billion during the quarter, compared to analyst estimates of $1.36 billion. During the same period in the previous year, the business earned $0.49 EPS. The firm's revenue for the quarter 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 forecast that Bath & Body Works will post 2.61 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the company. Gabelli Funds LLC lifted its stake in Bath & Body Works by 1.2% in the 3rd quarter. Gabelli Funds LLC now owns 47,536 shares of the company's stock worth $1,225,000 after purchasing an additional 542 shares in the last quarter. Parallel Advisors LLC lifted its stake in Bath & Body Works by 42.6% in the 4th quarter. Parallel Advisors LLC now owns 1,897 shares of the company's stock worth $38,000 after purchasing an additional 567 shares in the last quarter. State of Michigan Retirement System lifted its stake in Bath & Body Works by 1.2% in the 1st quarter. State of Michigan Retirement System now owns 49,300 shares of the company's stock worth $920,000 after purchasing an additional 600 shares in the last quarter. Meeder Asset Management Inc. lifted its stake in Bath & Body Works by 28.5% in the 4th quarter. Meeder Asset Management Inc. now owns 2,874 shares of the company's stock worth $58,000 after purchasing an additional 637 shares in the last quarter. Finally, State of Wyoming lifted its stake in Bath & Body Works by 6.2% in the 2nd quarter. State of Wyoming now owns 11,294 shares of the company's stock worth $338,000 after purchasing an additional 661 shares in the last quarter. Institutional investors own 95.14% of the company's stock.

Bath & Body Works News Summary

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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