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

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

A number of other brokerages have also weighed in on BBWI. Robert W. Baird set a $23.00 target price on shares of Bath & Body Works in a research note on Thursday. Wells Fargo & Company set a $24.00 price objective on shares of Bath & Body Works in a report on Thursday. The Goldman Sachs Group cut Bath & Body Works from a “neutral” rating to a “sell” rating and cut their price objective for the company from $23.00 to $19.00 in a research report on Wednesday, July 8th. Piper Sandler assumed coverage on Bath & Body Works in a report on Friday, May 15th. They set a “neutral” rating and a $20.00 target price on the stock. Finally, Barclays set a $22.00 target price on Bath & Body Works in a research report on Thursday. Four research analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus target price of $22.43.

Bath & Body Works Stock Performance

Shares of BBWI stock opened at $18.07 on Thursday. Bath & Body Works has a fifty-two week low of $14.27 and a fifty-two week high of $32.32. The firm has a market cap of $3.64 billion, a P/E ratio of 5.18, a P/E/G ratio of 1.73 and a beta of 1.38. The business’s 50 day moving average price is $20.36 and its 200-day moving average price is $20.01.

Bath & Body Works (NYSE:BBWI) last announced its earnings results on Wednesday, August 26th. The company reported $0.62 EPS for the quarter, beating analysts’ consensus estimates of $0.24 by $0.38. The company had revenue of $1.51 billion during the quarter, compared to the consensus estimate of $1.50 billion. Bath & Body Works had a negative return on equity of 45.34% and a net margin of 10.03%.The firm’s revenue for the quarter was down 2.3% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.30 earnings per share. 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. As a group, equities analysts predict that Bath & Body Works will post 2.63 EPS for the current year.

Institutional Investors Weigh In On Bath & Body Works

A number of institutional investors have recently modified their holdings of BBWI. Royal Bank of Canada grew its position in Bath & Body Works by 92.8% during the 1st quarter. Royal Bank of Canada now owns 59,877 shares of the company’s stock valued at $1,815,000 after purchasing an additional 28,815 shares during the last quarter. Goldman Sachs Group Inc. grew its holdings in shares of Bath & Body Works by 15.7% during the first quarter. Goldman Sachs Group Inc. now owns 645,970 shares of the company’s stock valued at $19,586,000 after buying an additional 87,529 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its holdings in shares of Bath & Body Works by 7.0% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 562,757 shares of the company’s stock valued at $17,063,000 after buying an additional 36,684 shares during the last quarter. Intech Investment Management LLC bought a new stake in shares of Bath & Body Works during the first quarter valued at approximately $1,155,000. Finally, 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 in the last quarter. 95.14% of the stock is owned by hedge funds and other institutional investors.

Key Headlines Impacting Bath & Body Works

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.