Bath & Body Works

BBWI · NYSE

$20.55+$0.71 (+3.58%)TodayMarket closed · Oct 20, 4:05 PM ET

Prev close $19.84

BBWI analyst rating

HoldConsensus of 17 analysts over the last 12 months. 24% rate it a buy.

Strong buy0
Buy4
Hold12
Underperform0
Sell1

12-month price target · 18 analysts

Average $24.74 (+20.4% upside)

Low: $17.17
Now: $20.55
High: $56.50

Upgrades and downgrades

The latest rating actions, newest first

BBWI analyst upgrades, downgrades and rating actions
Firm	Date	Action	Rating	Price target	Hit rate
Argus Research	Sep 16, 2026	Maintains	Hold	—	51%
BMO Capital	Sep 9, 2026	Initiates	Market Perform	$20.00	74%
Baird	Aug 27, 2026	Maintains	Neutral	$25.00 → $23.00	52%
Barclays	Aug 27, 2026	Maintains	Equal-Weight	$23.00 → $22.00	55%
UBS	Aug 27, 2026	Maintains	Neutral	$19.00 → $17.00	50%
Wells Fargo	Aug 27, 2026	Maintains	Overweight	$26.00 → $24.00	54%
Morgan Stanley	Aug 27, 2026	Maintains	Equal-Weight	$22.00 → $20.00	56%
JP Morgan	Aug 18, 2026	Maintains	Neutral	$22.00 → $24.00	57%
Citigroup	Aug 18, 2026	Upgrade	Neutral → Buy	$25.00	53%
Jefferies	Jul 28, 2026	Maintains	Hold	$22.00 → $23.00	38%

The case for and against

Updated Oct 14, 2026

Bull case

Bath & Body Works is supported by a compelling combination of brand strength, strong free cash flow, and shareholder returns, with fiscal ’25 FCF up ~30% and dividends still consuming only the mid-to-high 20’s as a share of FCF. The company’s valuation also looks attractive at ~7x FY2 P/E, while $250mm of cost savings over two years, including $175mm expected in 2026, should help offset wage inflation, sales deleverage, and higher supply chain costs. Although near-term sales have been pressured by share loss and down LSD% trends in 1H26, the expected step-up in innovation, digital, loyalty, and store experience in 2H26 plus a robust pipeline, healthy core categories, and Amazon traction support a positive longer-term outlook.

Bear case

Bath & Body Works is facing a negative fundamental setup because 1Q26 EPS only beat weak expectations while the core business still showed persistent strain, especially the mid-teens decline in body care sales and continued weakness in home fragrance. Management’s FY26 guidance still calls for sales to fall 4.5% to 2.5% and EPS of $2.40 to $2.65, while gross margin is expected around 42.4% as sales deleverage, merchandise margin pressure, tariffs, inflation, and higher input costs continue to weigh on profitability. The heavy reliance on constant promotions, including long-running discounts and a sharp increase in flash sales, suggests demand is still highly promotional and raises concern that innovation and channel growth may not be enough to restore full-price selling or meaningfully improve underlying trends.

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