Bath & Body Works analyst reactions mixed

What happened: Bath & Body Works, Inc. (BBWI) faced mixed analyst reactions recently. On May 28, Telsey Advisory Group lowered its price target to $22, while on June 1, Goldman Sachs trimmed its target to $23, both maintaining Neutral ratings. This follows a decline in body care sales, with Goldman Sachs citing a 14% decrease in the category's comps in Q1 2023.

Market impact: The downgrades and sales decline impacted BBWI's stock, which traded around $21.50 post-announcements, down from its 52-week high of $31.50. The personal care sector, particularly body care, is affected, with investors reassessing BBWI's growth prospects and valuation.

What to watch next: Investors should monitor BBWI's Q2 earnings, scheduled for August 24, to gauge the company's turnaround efforts. Additionally, keep an eye on BBWI's stock performance around its 50-day moving average, currently around $22.50, as a break below this level could signal further weakness.