Citigroup downgrades rating of Bath &amp; Body Works (BBWI.N) to “neutral” from “buy”, bringing the beauty and skincare firm’s shares down 2% at $23.55 premarket
Brokerage says it is cautious on FY26, which is expected to be the 5th consecutive year of sales declines as core business remains weak
Citi warns that Amazon’s (AMZN.O) expansion in 2H26 could intensify competition, particularly given the overlap with BBWI core customer base
However, brokerage raises PT to $25 from $21, representing ~4% upside to stock’s last close
PT raise reflects a slightly more stabilized consumer environment in the U.S. - Citigroup
5 of 15 brokerages rate stock “buy” or higher, 10 “hold”; median PT is $21 - data compiled by LSEG
BBWI was down 48% in 2025

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- Citigroup has downgraded Bath & Body Works' rating to “neutral” from “buy,” causing a 2% drop in shares to $23.55.  
- The brokerage expresses caution for FY26, anticipating a fifth consecutive year of sales declines due to a weak core business, with rising competition from Amazon in 2H26.  
- Despite the downgrade, Citi raises the price target to $25 from $21, reflecting a more stabilized consumer environment in the U.S., though the median price target among brokerages is $21.

BUZZ-Bath & Body Works down after Citigroup downgrades to 'neutral'