Stock Price & Analysis

Analysis and Insights

To determine whether it’s a good time to buy or sell Bath & Body Works (BBWI) stock, we need to analyze both technical and fundamental factors.

Fundamental Analysis:

Bath & Body Works has recently announced a mixed shelf offering, which includes common stock, preferred stock, and debt securities. While this provides flexibility for future capital needs, it may lead to share dilution. The company beat Q4 earnings expectations but faces tariff risks that could impact its outlook. Despite this, Citigroup upgraded its rating to Buy, citing potential growth from collaborations.

Technical Analysis:

The stock closed at $30.24 on March 17, 2025, showing strength near the upper end of its recent range. The price action suggests some bullish momentum, but heavy put volume indicates bearish sentiment.

Sentiment and Analyst Ratings:

Analyst sentiment is mixed, with some upgrades due to growth potential and others expressing concerns over promotions and underperformance compared to peers. The stock has a consensus rating of Hold, but recent upgrades suggest improving sentiment.

Conclusion:

Given the mixed sentiment, tariff risks, and heavy put volume, it may be prudent to hold BBWI stock for now. Monitor earnings growth, tariff impacts, and market sentiment before making a decision.

BBWI stock is predicted to reach $38 in 2025, driven by strong Q4 earnings and collaborations. A bullish case could push it to $42 if growth initiatives succeed.

The S1 support level for BBWI Stock is $28.7 ,The R1 resistant level for BBWI Stock is $34.12.

As of the end of day on 2025-03-19, the price of BBWI Stock was $30.27.

The target price for BBWI Stock according to analyst rating is 45.93, with the highest price target at 52.00 and the lowest at 38.00. Analysts have a Strong Buy rating on BBWI Stock overall.

The market cap of BBWI is $6.4B.

BBWI may be undervalued based on its lower P/E ratio of 11.33 compared to the industry average of 15-20. However, its EV/EBITDA of 8.44 suggests a premium. The stock has a PS ratio of 1.34, below the industry average of 1.5-2.5, indicating undervaluation. Analysts have mixed views, with some upgrades to Buy and a $43 average target. Despite beating earnings, tariff risks and promotions weigh on the outlook. The stock's underperformance versus peers raises concerns, but reaffirmed guidance and new products offer upside potential.

Bath & Body Works, Inc. is an omnichannel retailer focused on personal care and home fragrance. The Company sells merchandise through its retail stores in the United States (U.S.) and Canada, and through its websites and other channels, under the Bath & Body Works, White Barn and other brand names. Its international business is conducted through franchise, license and wholesale partners. It offers a range of care and home fragrance, including collections of fine fragrance mist, body lotion and body cream, 3-wick candles, home fragrance diffusers and liquid hand soap. Its products are differentiated through a combination of fragrance, packaging and quality at accessible prices. It also sells products under its sub brands, including White Barn. Its merchandise is sold through about 1,850 Company-operated stores and e-commerce sites in U.S. and Canada, and in 485 stores and 28 e-commerce sites in more than 40 other countries operating under franchise, license and wholesale arrangements.

Price Prediction for BBWI Stock by 2030

Based on current trends and analysis, the predicted price for BBWI stock by 2030 is $45 per share.

Reasons:

1. Collaborations and Growth Initiatives: BBWI's collaboration with Walt Disney Co. and strategic growth initiatives could drive revenue and profit growth.
2. Analyst Optimism: JPMorgan upgraded BBWI to Overweight with a price target of $47, reflecting confidence in its growth potential.
3. Tariff Risks and Mitigation: While tariff headwinds persist, the company's prudent guidance and mix of strategies to manage AUR growth suggest resilience.

BBWI has a total of 8981 employees.