Telsey Advisory Group adjusted its price target for Bath & Body Works Inc. shares on Friday. (NYSE:) to $53.00 from its previous $50.00, while reaffirming its Outperform rating on the stock. The adjustment follows a strong fiscal year for the company, marked by four quarters of earnings that beat expectations and strong performance during the crucial holiday season.
The company’s fourth-quarter results were hailed as evidence of the brand’s health and appeal to customers. Telsey noted that year-end earnings reflected a well-received product line and brand loyalty, despite conservative fiscal 2024 guidance provided by Bath & Body Works.
The top range of the forecast was just one cent below consensus, acknowledging potential challenges posed by the current economic climate and changing consumer spending patterns.
Telsey remains optimistic about Bath & Body Works’ prospects, citing the company’s established market presence and loyal customer base in a consumer sector characterized by frequent purchases of consumables.
The revised $53 price target is based on projected fiscal 2024 earnings growth, with Telsey applying a multiple of 14x to its two-year forward earnings per share (EPS) estimate of $3.78. This estimate is in line with multiples observed in recent trading. The updated target reflects Telsey’s expectations for continued revenue growth at Bath & Body Works next year.
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