Bath & Body Works stock rating reiterated as Overweight by Wells Fargo

Investing.com - Wells Fargo (NYSE:WFC) has reiterated its Overweight rating on Bath & Body Works Inc. (NYSE:BBWI) with a price target of $44.00.

The firm maintains BBWI as a "Top Pick" in its coverage, citing the company’s business as "largely insulated from tariff/supply chain noise." This resilience is reflected in the company’s strong financial health score of "GOOD" from InvestingPro, supported by a robust gross margin of 44.56% and a steady dividend yield of 2.52%.

Wells Fargo highlights multiple short- to long-term opportunities that could drive top-line growth and margin improvement as BBWI continues to enhance its operations and accelerate innovation.

The firm specifically notes the leadership of new CEO Daniel Heaf, who previously served as Nike (NYSE:NKE)’s Chief Strategy and Transformation Officer, as a positive factor for the company’s strategic direction.

Wells Fargo’s $44 price target represents approximately 12 times the firm’s fiscal year 2026 earnings per share estimate for Bath & Body Works.

In other recent news, Bath & Body Works reported its first-quarter results, which aligned with its earlier preannouncement and exceeded February’s guidance. Despite meeting these expectations, the company’s second-quarter guidance fell short of consensus estimates from LSEG Data & Analytics. Analysts at Goldman Sachs maintained a Buy rating with a $43 price target, highlighting the company’s strategic positioning and growth initiatives, including product innovations and personalized marketing. Meanwhile, UBS reiterated a Neutral rating with a $36 price target, citing concerns about growth rates in core categories and potential risks from the ongoing CEO transition. Telsey Advisory Group adjusted its price target to $38, down from $43, while maintaining an Outperform rating, noting the company’s maintained full-year guidance amidst challenging conditions. The firm also emphasized Bath & Body Works’ dual-channel traffic growth and new product introductions. In addition, the company held its Annual Meeting of Stockholders, electing nine directors and ratifying Ernst & Young LLP as the accounting firm for fiscal year 2025. These developments reflect Bath & Body Works’ ongoing efforts to strengthen its market position and navigate current economic challenges.

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