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

Bath & Body Works (NYSE:BBWI) had its target price trimmed by Morgan Stanley from $22.00 to $20.00 in a research report report published on Thursday morning, MarketBeat reports. The firm currently has an equal weight rating on the stock.

BBWI has been the topic of a number of other research reports. Jefferies Financial Group increased their price target on shares of Bath & Body Works from $22.00 to $23.00 and gave the stock a “hold” rating in a research note on Tuesday, July 28th. TD Cowen upped their price objective on Bath & Body Works from $20.00 to $25.00 and gave the stock a “buy” rating in a report on Thursday, May 28th. UBS Group reaffirmed a “neutral” rating on shares of Bath & Body Works in a research report on Wednesday, August 19th. Raymond James Financial reissued a “market perform” rating on shares of Bath & Body Works in a research report on Wednesday, May 27th. Finally, The Goldman Sachs Group lowered Bath & Body Works from a “neutral” rating to a “sell” rating and dropped their price target for the stock from $23.00 to $19.00 in a research note on Wednesday, July 8th. Four investment analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus price target of $22.29.

Bath & Body Works Trading Up 3.2%

Shares of NYSE:BBWI opened at $19.25 on Thursday. The firm has a market cap of $3.88 billion, a price-to-earnings ratio of 5.01, a PEG ratio of 1.97 and a beta of 1.38. The stock’s 50-day moving average price is $20.30 and its two-hundred day moving average price is $19.97. Bath & Body Works has a 12-month low of $14.27 and a 12-month high of $32.32.

Bath & Body Works (NYSE:BBWI) last posted its quarterly earnings data 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 net margin of 10.83% and a negative return on equity of 53.48%. The company’s quarterly revenue was down 2.3% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.30 EPS. 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, research analysts forecast that Bath & Body Works will post 2.7 earnings per share for the current fiscal year.

Bath & Body Works Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, September 4th. Investors of record on Friday, August 21st will be issued a $0.20 dividend. This represents a $0.80 annualized dividend and a yield of 4.2%. The ex-dividend date is Friday, August 21st. Bath & Body Works’s dividend payout ratio is currently 20.83%.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Global Retirement Partners LLC acquired a new stake in shares of Bath & Body Works in the fourth quarter valued at about $31,000. Activest Wealth Management purchased a new position in Bath & Body Works in the 4th quarter worth approximately $32,000. Geneos Wealth Management Inc. boosted its holdings in Bath & Body Works by 217.7% in the 1st quarter. Geneos Wealth Management Inc. now owns 1,169 shares of the company’s stock worth $35,000 after acquiring an additional 801 shares during the period. Parallel Advisors LLC grew its position in Bath & Body Works by 42.6% in the fourth quarter. Parallel Advisors LLC now owns 1,897 shares of the company’s stock valued at $38,000 after acquiring an additional 567 shares in the last quarter. Finally, Danske Bank A S acquired a new stake in Bath & Body Works in the third quarter valued at approximately $39,000. Institutional investors and hedge funds own 95.14% of the company’s stock.

Key Stories Impacting Bath & Body Works

Here are the key news stories impacting Bath & Body Works this week:

• Positive Sentiment: Q2 earnings beat and outlook increase: Bath & Body Works exceeded Wall Street expectations for second-quarter EPS and revenue, supported by stronger direct sales. Management also raised its fiscal 2026 outlook, signaling improving operating momentum and helping drive the stock’s recent advance. BBWI Stock Jumps 7.5% on Q2 Earnings Beat, Fiscal 2026 Outlook Raised
• Positive Sentiment: Above-average call activity: Traders purchased 6,948 call options, 64% above the typical daily volume. The activity may indicate increased near-term bullish interest, although options flow alone does not confirm a change in fundamentals.
• Positive Sentiment: Bullish expectations from some investors: A recent analysis argues that market expectations for Bath & Body Works may be too low, suggesting potential upside if the company continues delivering on its earnings and outlook improvements. Bath & Body Works: Market Expectations Are Set Too Low

Bath & Body Works Company Profile

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.