Bullish option flow was detected in BBWI stock on November 18, 2021, on a flurry of analyst upgrades after the company reported beats.

BBWI Stock Options Flow

Make sure to review this lesson on option flow so that you understand the image above.

Bath & Body Works price target raised to $89 from $78 at MKM Partners

MKM Partners analyst Roxanne Meyer raised the firm’s price target on Bath & Body Works to $89 from $78 and keeps a Buy rating on the shares. The company “handily” beat expectations on its Q3 sales, margin, and earnings, with stronger gross margins driven by lower than expected promotions and higher AURS, the analyst tells investors in a research note. Meyer adds that she was particularly pleased to see the high-single-digit increase in transactions and the low 30s growth in average dollar sale, which was balanced by high-teen increases in AUR and low-double-digit growth in units.

Bath & Body Works price target raised to $76 from $67 at Credit Suisse

Credit Suisse analyst Michael Binetti raised the firm’s price target on Bath & Body Works to $76 from $67 following quarterly results and to reflect the company’s strong consistency in driving revenue growth. The analyst keeps a Neutral rating on the shares.

Bath & Body Works price target raised to $85 from $80 at Wells Fargo

Wells Fargo analyst Ike Boruchow raised the firm’s price target on Bath & Body Works to $85 from $80 and keeps an Overweight rating on the shares. The analyst notes that the company appears to be a retail standout. Bath & Body Works posted a “solid” Q3 print with an upbeat Q4 outlook, Boruchow contends. The analyst highlights that the company has lapped the “scariest” COVID compares it had looming, and the business “simply continues to post impressive growth.” As a new public company, he believes there is further evidence that the stock deserves a more premium multiple.

Bath & Body Works price target raised to $87 from $86 at Deutsche Bank

Deutsche Bank analyst Gabriella Carbone raised the firm’s price target on Bath & Body Works to $87 from $86 and keeps a Buy rating on the shares post the “impressive” Q3 results. The company continues to demonstrate “very strong momentum,” Carbone tells investors in a research note.

Bath & Body Works price target raised to $95 from $85 at Baird

Baird analyst Mark Altschwager raised the firm’s price target on Bath & Body Works to $95 from $85 and keeps an Outperform rating on the shares. The analyst said the company continues to demonstrate its ability to sustain higher levels of sales/profitability post-COVID. FQ4 guidance appears conservative in the context of normal seasonal patterns; looking ahead to F2022, he sees opportunity for durable sales growth and buybacks.

Bath & Body Works Reports Third Quarter 2021 Earnings Results and Provides Fourth Quarter Guidance

On November 17, 2021, Bath & Body Works, Inc. (formerly known as L Brands, Inc.) (NYSE: BBWI) reported third quarter earnings results. The company reported Q3 adjusted EPS of 92c versus the consensus estimate of 52c. The company reported Q3 revenue of $1.68B versus the consensus estimate of $1.41B.

The company reported net sales of $1.681 billion for the third quarter ended Oct. 30, 2021, compared to net sales of $1.702 billion for the third quarter ended Oct. 31, 2020. Sales for the third quarter of 2021 increased 53 percent compared to sales of $1.099 billion in 2019.

Reported earnings per share from continuing operations for the third quarter ended Oct. 30, 2021, were $0.66 compared to $0.69 for the quarter ended Oct. 31, 2020. Third quarter operating income from continuing operations was $408.5 million compared to $436.1 million last year, and net income from continuing operations was $177.1 million compared to $196.1 million last year.

Reported results from continuing operations above include a 2021 pre-tax loss of $89.1 million ($0.25 per share) and a 2020 pre-tax loss of $52.7 million ($0.14 per share) on the early extinguishment of debt.

Excluding the losses on the early extinguishment of debt in both years, adjusted third quarter earnings per share from continuing operations were $0.92 compared to $0.83 last year, operating income from continuing operations was $408.5 million compared to $436.1 million last year, and adjusted net income from continuing operations was $244.8 million compared to $236.2 million last year.

At the conclusion of this press release is a reconciliation of reported-to-adjusted results.

Andrew Meslow, CEO of Bath & Body Works, stated, “In our first quarter as a standalone business, Bath & Body Works continued our positive momentum. We achieved third quarter results that exceeded our expectations, with a net sales increase of 53 percent and an adjusted earnings per share from continuing operations increase of 360 percent compared to the third quarter of 2019. This performance was driven by ongoing strong customer response to our merchandise assortment, a growing, loyal customer base and the exceptional efforts of our associates. As we head into the important Holiday season, our mostly domestic supply chain and market leadership in key categories position us well to deliver continued growth.”

As previously disclosed, the spin-off of the company’s former Victoria’s Secret business into a new, independent, publicly traded company, Victoria’s Secret & Co., was completed on Aug. 2, 2021. The results of the Victoria’s Secret business through Aug. 2, 2021, and the costs related to the spin-off are presented as discontinued operations separate from the company’s continuing operations for all periods presented.

VIDEO Jim Cramer: Shares of Bath & Body Works are a ‘steal’

Back in August 2021, Jim Cramer talked about BBWI stock.

BBWI stock technical analysis

BBWI stock chart as of November 18, 2021.

There are some recent Pocket Pivot signals which is bullish BUT the large players volume is falling which is concerning. The long and short term trends are both positive. This is looking good! BBWI is currently showing a bull flag pattern! A bull flag pattern occurs when prices pull back slightly after a strong rise up. This may be a nice opportunity for an entry. BBWI has an average technical rating and it also does not offer a high quality setup at the moment. Price movement has been a little bit too volatile to find a nice entry and exit point. It is probably a good idea to wait for a consolidation first. Click here for an email alert on when BBWI stock is a good entry.

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