Bath & Body Works a new long idea at Hedgeye
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Bath & Body Works (NYSE:BBWI) was added as a new long idea at Hedgeye with potential for 50% upside over the next 12–18 months.
“We think numbers have finally bottomed, and the rate of change is in favor of the bulls,” Hedgeye analyst Brian McGough wrote in a note on Thursday. “BBWI has a number of new initiatives that will help drive revenue growth and margin expansion.”
Bath & Body Works (BBWI) has a history of strong performance even as malls are challenged, McGough wrote.
“This is a high margin, well managed, underearning company that generates (and returns) a ton of cash trading at a low valuation,” McGough added.
Bath & Body Works (BBWI) is scheduled to report Q1 results on June 4.
