Bath & Body Works Inc. (BBWI:NYE) Analysts rate as a Strong Buy, $57 target

STA Research
by: STA Research
Bath & Body Works Inc.

Based on the Bath & Body Works stock forecasts from 20 analysts, the average analyst BBWI stock price target is USD 57.56 over the next 12 months. Bath & Body Works Inc.’s average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of Bath & Body Works stock is Neutral, which is based on 5 positive signals and 6 negative signals. At the last closing, Bath & Body Works stock price was USD 40.39Bath & Body Works stock price has changed by +3.05% over the past week, +12.88% over the past month and -32.05% over the last year.

Bath & Body Works, Inc. operates a specialty retailer of home fragrance, body care, and soaps and sanitizer products. The company sells its products under the Bath & Body Works, White Barn, and other brand names through specialty retail stores and websites located in the United States and Canada, as well as through international stores operated by partners under franchise, license, and wholesale arrangements. As of January 29, 2022, it operated 1,755 company-operated retail stores and 338 international partner-operated stores. The company was formerly known as L Brands, Inc. and changed its name to Bath & Body Works, Inc. in August 2021. Bath & Body Works, Inc. was founded in 1963 and is headquartered in Columbus, Ohio.

 

What we like:

Low volatility:

The annual returns for Bath and Body Works stock have been stable and consistent compared to its sector peers (for a hold period of at least 12 months) and is in the top quartile. Although stability is good, also keep in mind it can limit returns.

Superior capital utilization:

Bath and Body Works stock has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior return on assets:

Bath and Body Works stock has delivered better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.

Positive cash flow:

BBWI stock had positive total cash flow in the most recent four quarters.

Positive free cash flow:

BBWI stock had positive total free cash flow in the most recent four quarters.

 

What we don’t like:

Poor risk adjusted returns:

Bath and Body Works stock is delivering below median risk adjusted returns in its peers. Even if it is outperforming on returns, the returns are unpredictable. Proceed with caution.

Below median dividend returns:

The average income yield for Bath and Body Works stock over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

Overpriced compared to earnings:

BBWI stock price is trading high compared to its peers on a price to earning basis and is above the sector median.

Overpriced on cashflow basis:

BBWI stock price is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Low Earnings Growth:

Bath and Body Works stock has shown below median earnings growth in the previous 5 years compared to its sector

Low Revenue Growth:

Bath and Body Works stock has shown below median revenue growth in the previous 5 years compared to its sector

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