Bath & Body Works price target lowered to $39 from $47 at Piper Sandler

Piper Sandler lowered the firm’s price target on Bath & Body Works to $39 from $47 and keeps a Neutral rating on the shares. The biggest focus this quarter for the beauty and wellness space has been consumer willingness to spend and the need for promotion. While concerns have been high, Piper has not seen signals of meaningful consumption reduction in the space, but it notes there have been “pockets of vulnerability,” like trade down to private label, lower frequency of certain services like aesthetics, and less experimentation and splurging in some categories like cosmetics and hair. Beyond the near term, the firm continues to view e.l.f. Beauty (ELF) as its top pick, with Inter Parfums (IPAR) and Perrigo (PRGO) also favored ideas.