Bath & Body Works (NYSE:BBWI) Price Target Lowered to $20.00 at Morgan Stanley

Bath & Body Works (NYSE:BBWI) had its price target reduced by equities research analysts at Morgan Stanley from $22.00 to $20.00 in a report released on Thursday,Benzinga reports. The firm currently has an “equal weight” rating on the stock. Morgan Stanley’s price target indicates a potential upside of 10.70% from the stock’s current price.

Other equities research analysts have also recently issued reports about the company. Citigroup upgraded Bath & Body Works from a “neutral” rating to a “buy” rating and set a $25.00 price objective on the stock in a research note on Tuesday, August 18th. Piper Sandler initiated coverage on shares of Bath & Body Works in a research report on Friday, May 15th. They set a “neutral” rating and a $20.00 target price for the company. TD Cowen lifted their target price on shares of Bath & Body Works from $20.00 to $25.00 and gave the stock a “buy” rating in a research note on Thursday, May 28th. Telsey Advisory Group lowered their price target on shares of Bath & Body Works from $25.00 to $22.00 and set a “market perform” rating on the stock in a research report on Thursday, May 28th. Finally, The Goldman Sachs Group lowered Bath & Body Works from a “neutral” rating to a “sell” rating and reduced their price objective for the company from $23.00 to $19.00 in a research report on Wednesday, July 8th. Four equities research analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus price target of $22.43.

Bath & Body Works Trading Down 4.4%

Shares of NYSE BBWI opened at $18.07 on Thursday. The stock has a fifty day simple moving average of $20.36 and a two-hundred day simple moving average of $20.01. Bath & Body Works has a 1-year low of $14.27 and a 1-year high of $32.32. The firm has a market cap of $3.64 billion, a price-to-earnings ratio of 5.18, a price-to-earnings-growth ratio of 1.73 and a beta of 1.38.

Bath & Body Works (NYSE:BBWI) last released its earnings results on Wednesday, August 26th. The company reported $0.62 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.24 by $0.38. Bath & Body Works had a negative return on equity of 45.34% and a net margin of 10.03%.The business had revenue of $1.51 billion during the quarter, compared to the consensus estimate of $1.50 billion. During the same period last year, the business posted $0.30 earnings per share. The business’s revenue for the quarter was down 2.3% on a year-over-year basis. Bath & Body Works has set its Q3 2026 guidance at 0.070-0.120 EPS and its FY 2026 guidance at 2.600-2.800 EPS. Analysts forecast that Bath & Body Works will post 2.63 EPS for the current year.

Institutional Investors Weigh In On Bath & Body Works

Several institutional investors have recently bought and sold shares of BBWI. Global Retirement Partners LLC bought a new stake in 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 worth $32,000. Geneos Wealth Management Inc. raised its holdings in Bath & Body Works by 217.7% during the 1st quarter. Geneos Wealth Management Inc. now owns 1,169 shares of the company’s stock valued at $35,000 after buying an additional 801 shares during the last quarter. Parallel Advisors LLC boosted its position in Bath & Body Works by 42.6% during the 4th quarter. Parallel Advisors LLC now owns 1,897 shares of the company’s stock valued at $38,000 after buying an additional 567 shares during the period. Finally, Danske Bank A S purchased a new stake in Bath & Body Works during the 3rd quarter valued at $39,000. 95.14% of the stock is currently owned by hedge funds and other institutional investors.

Bath & Body Works News Summary

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

• Positive Sentiment: BBWI reported second-quarter adjusted EPS of $0.62, well above the $0.24 analyst consensus and up from $0.37 a year earlier. Revenue of approximately $1.51 billion also slightly exceeded expectations. Bath & Body Works Q2 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Management raised full-year adjusted EPS guidance to $2.60-$2.80 from $2.40-$2.65 and narrowed its expected sales decline to 2.5%-4%. The stronger outlook was attributed to higher profitability and resilient demand. Bath & Body Works lifts annual profit forecast
• Positive Sentiment: Digital and direct-channel sales grew, helped by improvements to the online shopping experience, partially offsetting weak physical-store traffic. Analysts bullish on the turnaround argue that BBWI’s discounted valuation, improving cash flow, planned cost savings and debt reduction could support future buybacks. Bath & Body Works turnaround story
• Neutral Sentiment: Despite the earnings beat, second-quarter net sales declined 2.3% year over year to $1.51 billion, indicating that the business remains dependent on improved consumer demand and continued digital momentum.
• Negative Sentiment: Third-quarter adjusted EPS guidance of $0.07-$0.12 is substantially below the $0.27 consensus estimate, while revenue guidance of $1.6-$1.7 billion is broadly in line with expectations. The cautious near-term outlook reflects ongoing pressure on store traffic and could limit the stock’s recovery. Bath & Body Works falls despite earnings beat

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.