BBWI - Bath & Body Works tipped by Piper Sandler to double in share price

Piper Sandler started off coverage on Bath & Body Works ( NYSE: BBWI ) with an Overweight rating.

Analyst Korinne Wolfmeyer and team said they are fans of the defensive growth story side of investing in BBWI and see upside with international expansion and the retailer's entrance into more beauty and personal care categories, including hair and skin care this fall.

The BBWI business model of requiring consumers to restock on supplies is also seen as strategic with the beauty category seen as one of the last areas to be hit by inflation.

"We believe the repeat business model with daily use and replenish-like qualities along with providing highly-giftable products in a category that’s proved to be a staple during and following the pandemic makes for a highly attractive name that’s relatively under-valued."

Shares of BBWI fell 1.52% premarket on Thursday to $26.00.

Piper Sandler's price target of $58 on BBWI implies shares will more than double from their depressed level. BBWI sunk to a 52-week low on Wednesday after JPMorgan turned negative.

For further details see: