Not a good buy right now for an impatient investor: trend is still technically bearish (SMA200 > SMA20 > SMA5) and sentiment is negative (heavy put activity + lawsuit headlines).
Risk/reward into the next few sessions looks skewed to downside/whipsaw: price is below key resistance ($22.84) with elevated implied volatility and bearish options positioning.
Best stance here is to avoid/new-sell rallies until price reclaims resistance and trend improves (or until post-earnings clarity on 2026-02-26).
Technical Analysis
Pre-market: $21.98 (-0.50%), hovering slightly above the pivot ($21.834) but still below key resistance.
Trend: Bearish moving average stack (SMA_200 > SMA_20 > SMA_5) indicates the broader downtrend remains intact.
MACD: Histogram -0.116 (below 0) and negatively contracting → downside momentum is easing, but not reversed.
RSI(6): 53.97 (neutral) → no strong oversold bounce signal.
Levels to watch: Resistance R1 $22.835 (break needed to improve near-term tone), then R2 $23.453. Support S1 $20.833, then S2 $20.215 (key downside levels if selling resumes).
Pattern-based stats provided suggest modest upside bias (1D/1W/1M), but that conflicts with the still-bearish trend structure; treat as low-conviction without a technical breakout.
Options Data
Bearish
Open Interest Put-Call Ratio
Bearish
Option Volume Put-Call Ratio
Positioning/Sentiment: Put open interest materially exceeds calls (167,970 puts vs 93,881 calls) and put volume dominates → bearish/defensive sentiment.
Volatility: IV 30d ~67.85 vs historical vol ~36.17; IV percentile 99.2 (very elevated) → market is pricing large moves, typically around uncertainty/negative overhang.
Liquidity/activity: Today’s option volume (14,271) is elevated vs recent averages (82% of 30-day avg; open interest also elevated) → active hedging/speculation, not complacency.
Technical Summary
Sell
3
Buy
10
Positive Catalysts
Upcoming earnings: QJAN 2026 earnings on 2026-02-26 (pre-market) could act as a reset catalyst if results/guidance surprise positively.
Some Wall St. outlook stabilization in early Jan: multiple firms nudged price targets up into the $20–$21 area, suggesting expectations may have been sufficiently reduced after the big Nov reset.
Macro narrative from analysts: potential consumer tailwinds (tax refunds/lower rates/lower gas) could support specialty retail demand in 1H.
Neutral/Negative Catalysts
keep an overhang on the stock and can weigh on near-term flows.
Net income: $77M, -27.36% YoY → meaningful profitability deterioration.
EPS: $0.37, -22.92% YoY → earnings power weakening.
Gross margin: 41.28%, -5.06% YoY → margin pressure is a core issue; this makes rebounds harder without either pricing power or promotions easing.
Trading trends: hedge funds and insiders flagged as neutral (no notable supportive flow signals).
Growth
Profitability
Efficiency
Analyst Ratings and Price Target Trends
Recent analyst trend: big reset/downgrades and deep target cuts on 2025-11-21 (targets slashed into ~$17–$18 range, concerns about structural headwinds and margin pressure). In early Jan 2026, several firms raised targets modestly to ~$20–$21 but generally kept Hold/Neutral/Equal Weight stances.
Current Street posture (pros): brand strength/loyal customer base; some macro tailwinds into 2026; easier comparisons and potential consumer support.
Current Street posture (cons): recovery expected to take time; limited near-term visibility; promotions/margins remain a concern; skepticism about returning to consistent growth and margin expansion.
Politician/congress activity: no recent congress trading data available.
Wall Street analysts forecast BBWI stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for BBWI is 20.14 USD with a low forecast of 15 USD and a high forecast of 26 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
14 Analyst Rating
Wall Street analysts forecast BBWI stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for BBWI is 20.14 USD with a low forecast of 15 USD and a high forecast of 26 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
4 Buy
10 Hold
0 Sell
Moderate Buy
Current: 22.240
Low
15
Averages
20.14
High
26
Current: 22.240
Low
15
Averages
20.14
High
26
Deutsche Bank
Hold
maintain
$21
AI Analysis
2026-01-08
Reason
Deutsche Bank
Price Target
$21
AI Analysis
2026-01-08
maintain
Hold
Reason
Deutsche Bank resumed coverage of Bath & Body Works with a Hold rating and $21 price target. The firm resumed coverage of global brands, off-price, and specialty beauty retail. Following a "surprisingly strong" year for retail, Deutsche is entering 2026 with optimism as it anticipates a "volatile but broadly risk-on" macro environment, the analyst tells investors in a research note. The firm sees solid top-line trends, particularly in the first half of the year, due to easier weather comparisons and a boost in tax refunds.
UBS
Jay Sole
Neutral
maintain
$17 -> $21
2026-01-08
Reason
UBS
Jay Sole
Price Target
$17 -> $21
2026-01-08
maintain
Neutral
Reason
UBS analyst Jay Sole raised the firm's price target on Bath & Body Works to $21 from $17 and keeps a Neutral rating on the shares. CY26 EPS upside for Softline stocks is expected to be driven by a stronger-than-expected U.S. consumer and an underappreciated "Health & Wellness 2.0" trend, with estimates at least 4% above consensus for 16 names, the analyst tells investors in a research note. Earnings momentum is projected to extend into CY27, with EPS forecasts averaging about 5% above consensus, the firm adds.
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