Raymond James reiterates Outperform rating on Bath & Body Works stock

Published 14/08/2025, 11:36
Raymond James reiterates Outperform rating on Bath & Body Works stock

Investing.com - Raymond James maintained its Outperform rating and $37.00 price target on Bath & Body Works Inc. (NYSE:BBWI) on Thursday.

The firm expects Bath & Body Works to meet or exceed second-quarter expectations, citing better execution of the Semi-Annual Sale compared to last year. Raymond James expressed optimism about the impact of the Summerween promotion and an upcoming Disney collaboration in the second half of the year.

The research firm noted that third-quarter consensus expectations imply a significant improvement on a two-year stack, as last year benefited from extra promotions to offset the weak 2024 Semi-Annual Sale. This year’s sale was better timed to emphasize value while allowing for a separate Father’s Day promotion to support the growing Men’s business.

Raymond James indicated that while it’s early in new CEO Daniel Heaf’s tenure, strategic initiatives already announced should support faster growth, including improvements in digital, marketing, and packaging areas.

The firm also highlighted Bath & Body Works’ expansion into 600 college bookstores, noting that while this won’t significantly impact top-line results immediately, it represents a solid start to the company’s plans to expand beyond its own retail locations.

In other recent news, Bath & Body Works has declared a regular quarterly dividend of $0.20 per share, maintaining its shareholder return program. This dividend will be payable on September 5, 2025, to shareholders of record as of August 22, 2025. In analyst updates, Wells Fargo reiterated its Overweight rating on Bath & Body Works, setting a price target of $44.00 and noting the company’s resilience against tariff and supply chain issues. Similarly, Goldman Sachs maintained a Buy rating with a price target of $43.00, highlighting stable promotional activities. UBS, however, maintained a Neutral rating with a $36.00 price target, citing concerns over growth rates and potential risks from the CEO transition. Additionally, Bath & Body Works held its Annual Meeting of Stockholders, where nine directors were elected to the board with strong majority support.

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