Goldman Sachs reiterates Buy rating on Bath & Body Works stock

Published 08/07/2025, 11:24
Goldman Sachs reiterates Buy rating on Bath & Body Works stock

Investing.com - Goldman Sachs maintained its Buy rating and $43.00 price target on Bath & Body Works Inc. (NYSE:BBWI) in a research note released Tuesday.

The firm’s promotional tracker indicates that Bath & Body Works’ promotions remained relatively flat year-over-year in May and decreased year-over-year in June, with the summer semi-annual sale shifting approximately two weeks later this year compared to last year.

Digital trends for the retailer showed positive momentum, with app downloads increasing 10% year-over-year in June and remaining significantly higher than levels before the August 2022 loyalty program launch, while monthly active users grew 31% year-over-year.

Goldman Sachs noted Bath & Body Works’ recent Halloween event for loyalty members and upcoming in-store Halloween launch, which is occurring earlier than last year, as positive developments for the company.

The firm maintains its positive outlook on Bath & Body Works based on the company’s positioning to offer customers "affordable luxuries," growth initiatives including product innovation and category expansions, increased personalized marketing, and an "highly attractive" valuation with the stock trading at 9.2x next twelve months price-to-earnings ratio.

In other recent news, Bath & Body Works reported its first-quarter results, showing a 3% increase in year-over-year sales and earnings per share (EPS) of $0.49. The company’s full-year sales growth forecast remains at 1-3%, with an EPS range of $3.25-$3.60, despite the introduction of tariffs. Goldman Sachs maintained a Buy rating with a $43 price target, citing the company’s strategic initiatives and attractive valuation. Telsey Advisory Group adjusted its price target to $38, maintaining an Outperform rating, and noted the company’s dual-channel traffic and growth across core categories. Raymond (NSE:RYMD) James also reaffirmed an Outperform rating with a $37 target, highlighting Bath & Body Works’ strong gross margins and new CEO leadership. UBS reiterated a Neutral rating with a $36 target, expressing concerns about growth rates and potential short-term challenges due to the CEO transition. Additionally, Bath & Body Works held its Annual Meeting of Stockholders, electing nine directors and ratifying Ernst & Young LLP as its accounting firm. The company also approved executive compensation with significant stockholder support.

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