Bath & Body Works price target raised to $55 from $49 at Deutsche Bank

Deutsche Bank analyst Gabriella Carbone raised the firm’s price target on Bath & Body Works to $55 from $49 and keeps a Buy rating on the shares ahead of the Q4 reports on February 29. The analyst sees upside from the company’s merchandise margin and benefits from cost optimization. Cannel checks pointed to solid traffic over the Black Friday weekend and through December, likely a function of the Annual Candle Day Event and strong beauty/fragrance market demand, the analyst tells investors in a research note. The firm thinks Bath & Body remains on track to generate $200M of annual cost savings with $150M realized in 2023.