Opinions
The Panic-Proof Portfolio (Stockchase Research)
Bath & Body Works
BBWI-N
TOP PICK
Aug 24, 2021
$68.410
Stock price when the opinion was issued
Consumer Products
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STRONG BUY
Was spun off from L Brands. He likes it. But it's against tough comps YOY, because last year's performance was strong. Will trade at 15x 2022's earnings estimates. This is a steal. Splitting up a business can unlock value.
Consumer Products
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PAST TOP PICK
(A Top Pick Aug 24/21, Up 19.1%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with BBWI is progressing well and has achieved its $81.50 objective. To remain disciplined, we recommend covering half the position at this time and trailing up the stop (from $48.50) to $68.50.
Consumer Products
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TOP PICK
Stockchase Research Editor: Michael O'Reilly BBWI, an offshoot of the previously named L Brands (which separated from the Victoria's Secret line) is reiterated as a TOP PICK. Recently reported earnings beat analyst expectations by over 50%. Its mostly domestically sourced product line is helping it to avoid supply chain issues going into the holiday sales season. It trades at 13x earnings compared to peers at 26x and is using cash to pay down debt. We continue to recommend a stop loss at $68.50, looking to achieve $90.00 -- upside potential over 25%. Yield 0% (Analysts’ price target is $90.06)
Consumer Products
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PAST TOP PICK
(A Top Pick Dec 16/21, Down 2.8%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with BBWI has triggered its stop at $68.50. To remain disciplined, we recommend covering the position at this time. When combined with the previous buy recommendation this will result in a break-even net investment.
Consumer Products
Stockchase Research Editor: Michael O'Reilly BBWI is the offshoot of the previously named L Brands, which separated from the Victoria's Secret line. Its first earnings report showed revenue up 43% from a year ago and 14% above pre-pandemic levels. Company guidance for revenue was upgraded to indicate near 10% annual growth expectations for the next 3-5 years with an eye to expand margins further. It trades at 10x earnings compared to peers at 23x and has a great cash reserve position. We would buy this with a stop loss at $48.50, looking to achieve $81.50 -- upside potential over 18%. Yield 0% (Analysts’ price target is $81.28)