It’s time to buy shares of Bath and Body Works , which is a “defensible growth story” that can more than double from here after its recent stock tumble, according to Piper Sandler. Analyst Korinne Wolfmeyer initiated coverage of Bath and Body Works with an overweight rating, saying in a Thursday note that the stock looks attractive after dropping more than 60% this year, and that the company has plenty of growth opportunities ahead. “We’re fans of the defensible growth story BBWI is and the upside opportunity with international expansion and entrance into other areas of beauty/personal care,” Wolfmeyer wrote. Piper Sandler issued a $58 price target, which is more than double where shares closed Wednesday. Piper analysts approve of the company’s plans to expand into hair and skin care this fall, as both categories have grown more popular, as well as a business model that requires consumers to restock on supplies. The firm believes the beauty category will be “one of the last areas to be hit” by inflation, given a consumer focus on self care that insulates the sector from cuts to consumer spending. “We believe the repeat business model with daily use and replenish-like qualities along with providing highly-giftable products in a category that’s proved to be a staple during and following the pandemic makes for a highly attractive name that’s relatively under-valued,” the note read. Shares of Bath and Body Works rose more than 1% in Thursday premarket trading. —CNBC’s Michael Bloom contributed to this report.
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