Home / Business and Economy / Bath & Body Works Gets Citi Upgrade: Buy Signal Ahead
Bath & Body Works Gets Citi Upgrade: Buy Signal Ahead
18 Aug
Summary
- Citi upgrades Bath & Body Works to Buy from Neutral.
- Analyst expects earnings beat and stock price upside.
- Price target remains $25 with favorable risk/reward.
Citi analysts have upgraded Bath & Body Works to a 'Buy' rating, moving from a 'Neutral' stance. This strategic shift precedes the company's second-quarter earnings release scheduled for next week. The upgrade is underpinned by the expectation that Bath & Body Works will surpass its earnings per share estimates.
Analysts project second-quarter earnings of $0.26 per share, exceeding the consensus of $0.24 and the company's own guidance. The recent success of the Fruit Fusion product line is cited as a positive indicator for management's confidence in introducing new products and marketing strategies for the latter half of the year.
While maintaining full-year 2026 estimates, Citi highlighted potential upside from decreased energy prices and possible tariff refunds. These factors, combined with a $25 price target and a favorable valuation of 5.1 times forecast 2026 EBITDA, present an attractive investment opportunity over the next 12 months.
