TD Cowen has reiterated its Buy rating and $40.00 price target for Bath & Body Works Inc. (NYSE: NYSE:BBWI), highlighting the company's positioning amidst concerns over ocean freight impact.
The firm's analysis suggests that while companies with significant ocean freight exposure might face challenges due to potential delays and cost increases, many, including Bath & Body Works, are likely prepared with fall/winter inventory already secured.
In addition to Bath & Body Works, TD Cowen also named LVMH (MC FP) as a well-positioned stock with a Buy rating and a price target of €591.90. The analyst's comments underscore a broader market evaluation, identifying stocks that may be worth monitoring due to their ocean freight exposure.
Among those to watch, the firm listed Kohl's Corporation (NYSE:NYSE:KSS) with a Hold rating and a price target of $18.68, Macy's Inc. (NYSE:NYSE:M) also with a Hold rating at a price target of $15.30, and J.Jill, Inc. (NYSE:JILL) with a Hold rating and a price target of $25.13. These companies are on the firm's radar for potential impacts from the ongoing freight challenges.
The focus on inventory management and forward planning by companies like Bath & Body Works is crucial in the firm's analysis, suggesting a strategic approach to mitigating risks associated with global shipping and logistics.
In other recent news, Kohl's Corporation experienced a range of developments. Despite a 5.1% decline in same-store sales, the company reported a 13% increase in Q2 2024 earnings. This was attributed to effective inventory and cost management. TD Cowen downgraded Kohl's stock from Buy to Hold due to ongoing negative sales trends, while JPMorgan (NYSE:JPM) downgraded the stock from Neutral to Underweight. On a positive note, Kohl's revised its full-year 2024 EPS outlook upwards to $1.75-$2.25, exceeding the previous guidance of $1.25-$1.85.
Baird also adjusted its outlook on Kohl's shares, reducing the price target to $25 from $27, while maintaining an Outperform rating.
The company's strategic initiatives, including partnerships with Babies "R" Us and expansion of key growth areas, are expected to gradually contribute to its financial performance.
Despite facing challenges from inflation and high interest rates, Kohl's remains optimistic about its long-term success, driven by these strategic initiatives.
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