JP Morgan maintains Bath & Body Works Inc.(BBWI:NYE) with a Neutral rating and raises the target price to $40

by: Gillian Lawrence
bath and body works stock forecast

JP Morgan maintains Bath & Body Works Inc. with a Neutral rating and raises the target price to $40 from $38 on the company’s stock.

Based on the Bath & Body Works stock forecast from 22 analysts, the average analyst target price for Bath & Body Works Inc. is USD 51.23 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 Inc. is Slightly Bearish, which is based on 5 positive signals and 8 negative signals. At the last closing, Bath & Body Works Inc.’s stock price was USD 37.38Bath & Body Works Inc.’s stock price has changed by -4.45% over the past week, -4.64% over the past month and -42.60% over the last year.

What we like:

Low volatility

The stock’s annual returns 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

The company management 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

The company management has delivered better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

What we don’t like:

Poor risk adjusted returns

This company 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 total returns

The company has under performed its peers on annual average total returns in the past 5 years.

Below median dividend returns

The company’s average income yield 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

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

Overpriced on cashflow basis

The stock 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

This stock has shown below median earnings growth in the previous 5 years compared to its sector.

Low Revenue Growth

This stock has shown below median revenue growth in the previous 5 years compared to its sector.

Low Dividend Growth

This stock has shown below median dividend growth in the previous 5 years compared to its sector.

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