On May 30, Telsey Advisory Group reduced its price target on Bath & Body Works, Inc. (NYSE:BBWI)’s stock to $38 from the prior target of $43, while maintaining an “Outperform” rating, as reported by The Fly.
A female customer browsing a variety of body care products in a retail store.
The firm’s analyst opines that the company remains focused on building a stronger foundation, which is expected to fuel strong growth and profitability over the long term. However, it reduced its price objective on Bath & Body Works, Inc.’s stock amidst the continued tariff pressure.
The company’s outlook for FY 2025 remains unchanged, which the firm finds encouraging considering the current difficult conditions. For FY 2025, Bath & Body Works, Inc. expects net sales growth of 1% – 3% as compared to $7,307 million in FY 2024, and FY 2025 earnings per diluted share of $3.25 to $3.60 as compared to earnings per diluted share of $3.61 and adjusted earnings per diluted share of $3.29 in FY 2024.
Telsey Advisory Group highlighted Bath & Body Works, Inc. as a well-established brand, enjoying a loyal customer base in a consumer space, which is dictated by elevated levels of purchase frequency of consumable products. Furthermore, the traction of loyalty programs, higher investments in infrastructure and systems, and efforts focused on streamlining operations can help the company in the long term.
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