Citigroup Upgrades Bath & Body Works to Buy, Raises Price Target to $48

Citigroup has upgraded Bath & Body Works (BBWI) from Neutral to Buy, raising its price target from $40 to $48, citing an expected sales rebound in the second half of 2024. Analysts believe the company is poised for growth after several years of declines, supported by a strong innovation pipeline and improvements in product categories, particularly in body mist and fragrances. TD Cowen also maintains a Buy rating with a price target of $48, highlighting robust free cash flow and strategic initiatives to attract younger consumers. Despite some cautious guidance for fiscal year 2025, analysts project improved fundamentals and increased profitability due to better execution and operational enhancements. Analysts from Telsey Advisory Group reaffirmed a positive outlook with an Outperform rating and a $43 price target, indicating general market confidence in Bath & Body Works' recovery. The consensus among analysts suggests a favorable capital return outlook, anticipating significant share buybacks and free cash flow generation in the coming fiscal years.