Bath & Body Works Stock Upgraded By Piper Sandler On Strong Brand Interest, Attractive Share Price: Retail Investors Very Interested

Piper Sandler has upgraded its rating on Bath & Body Works (BBWI), citing strong consumer response and favorable macroeconomic factors.

The Wall Street research firm upgraded the company's shares to 'Overweight' from 'Neutral', and lowered its price target to $35 from $38, according to The Fly. The recommendation signals a 31% upside from the current stock price. 

Bath & Body Works is known for its fragrant body care range, candles, soaps, and fragrances.

The business is "fairly well-insulated" from macro pressures relative to peers, with minimal sourcing from outside the U.S., Piper Sandler analysts said in a note.

They added that the current share price, which is at an all-time low, is an attractive entry point.

Also, Bath & Body Works emerged as a preferred consumer brand in Piper Sandler's recent survey of teenagers in the U.S.

It was the top fragrance brand for teen girls and among the top 10 for teen boys for body and skin care products.

Citi previously lowered its price target to $36 from $48 and kept a 'Buy' rating.

On Stocktwits, retail sentiment was 'extremely bullish’, up from 'bullish' a week ago. The message volume was high.

One bullish user said the stock might go up to $30.

In fiscal 2024, Bath & Body Works reported $7.3 billion in net sales and $3.61 earnings per share, both slightly down year-over-year, but exceeded guidance amid strong holiday demand and product innovation.

BBWI shares are down 31.3% year to date.

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