TD Cowen Reiterates Buy Rating for Bath & Body Works Inc. Amidst Ocean Freight Concerns
TD Cowen has reaffirmed its Buy rating and $40.00 price target for Bath & Body Works Inc. (NYSE: NYSE:), emphasizing the company's strong positioning despite worries about ocean freight impact. The firm's analysis indicates that companies with significant ocean freight exposure may encounter challenges due to potential delays and cost hikes. However, many, including Bath & Body Works, are well-prepared with fall/winter inventory already secured.
Alongside Bath & Body Works, TD Cowen also highlighted LVMH (MC FP) as a promising stock with a Buy rating and a price target of €591.90. This evaluation reflects a broader market assessment, pinpointing stocks worth monitoring due to their ocean freight exposure.
Among the companies to keep an eye on, TD Cowen listed Kohl's Corporation (NYSE:NYSE:) with a Hold rating and a price target of $18.68, Macy's Inc. (NYSE:NYSE:) also with a Hold rating and a price target of $15.30, and J.Jill, Inc. (NYSE:JILL) with a Hold rating and a price target of $25.13. These companies are under scrutiny for potential impacts from the ongoing freight challenges.
The focus on inventory management and forward planning exhibited by companies like Bath & Body Works is pivotal in mitigating risks associated with global shipping and logistics, as per TD Cowen's analysis.
In recent news, Kohl's Corporation saw various developments. Despite a 5.1% decline in same-store sales, the company reported a 13% increase in Q2 2024 earnings, attributed to effective inventory and cost management. TD Cowen downgraded Kohl's stock from Buy to Hold due to continuing negative sales trends, while JPMorgan downgraded the stock from Neutral to Underweight. On a positive note, Kohl's adjusted its full-year 2024 EPS outlook upwards to $1.75-$2.25, surpassing the previous guidance of $1.25-$1.85.
Baird also modified its outlook on Kohl's shares, reducing the price target to $25 from $27, while maintaining an Outperform rating. The company's strategic initiatives, including partnerships with Babies "R" Us and expansion of key growth areas, are anticipated to gradually enhance its financial performance.
Despite inflation and high interest rates posing challenges, Kohl's remains upbeat about its long-term success, driven by these strategic initiatives.
In conclusion, investors should closely monitor companies with significant ocean freight exposure like Bath & Body Works and LVMH. Understanding the impact of global shipping challenges on these stocks is crucial for making informed investment decisions. Additionally, keeping track of companies like Kohl's Corporation and their strategic adaptations can provide valuable insights into navigating the current market landscape.