BBWI - Bath & Body Works bulls pound the table on long-term upside

Bath & Body Works (NYSE:BBWI -8.7%) is defended on Wall Street after the retailer fell sharply despite a Q1 earnings beat. UBS said its Buy thesis on BBWI is largely unchanged even with the retailer trimming its guidance into inflation headwinds. "Our view is the market will ultimately see BBWI as having better long-term growth prospects than currently believed. We believe the market thinks BBWI's big CY20 growth was fueled by robust hand sanitizer sales that will reverse as the pandemic ends in the US. We think the growth was more broad based and BBWI's 1Q22 result provides evidence this is the case." Well Fargo also stuck with a bullish stance on BBWI off its view that solid core fundamentals and prudent rebase on costs sets the stock up as a top pick for 2022 in the retail sector. "Looking to FY23 we see the 80bps in transitionary SG&A expenses

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Bath & Body Works bulls pound the table on long-term upside