Analysts Offer Insights on Consumer Cyclical Companies: Bath & Body Works (BBWI) and On Holding AG (ONON)
Wells Fargo analyst Ike Boruchow maintained a Buy rating on Bath & Body Works (BBWI) with a $24.00 price target. On Holding AG (ONON) received a Buy rating from Citi's Paul Lejuez and a $38.00 target from Berenberg Bank. BBWI closed at $16.45, ONON at $29.96. Analyst consensus: BBWI Hold ($22.20 target), ONON Strong Buy ($42.57 target).
How this was made
The 30-second read
Why it matters
The new Buy ratings and elevated price targets provide fresh bullish signals that can be acted upon quickly.
Market read
The analyst upgrades are likely to generate short-term buying interest in BBWI and ONON.
What to watch
Potential supply-chain constraints or consumer spending slowdown could temper upside.
Background
Analyst rating updates are a common catalyst for short-term price moves in consumer discretionary equities.
Ticker impact
Wells Fargo analyst upgraded Bath & Body Works to Buy with a $24 price target, new rating and target disclosed today.
likely upward pressure as investors price in the new target.
The upgrade is a fresh analyst opinion with a concrete price target, which can move the stock in the short term.
Citi reiterated a Buy rating on On Holding AG with a $42.57 average target and Berenberg initiated coverage with a $38 target, both new today.
potential price lift as the market absorbs the bullish consensus.
New analyst coverage and elevated targets constitute fresh, material information for traders.
Market effects
Both upgrades reinforce a positive outlook for the Consumer Cyclical sector.
U.S. consumer discretionary stocks may see modest buying pressure.
Limited to investors tracking U.S. consumer stocks; no broader macro impact.
Counterpoint
Some investors may view the high price targets as overoptimistic given recent price performance.
Key entities
- Analyst FirmWells Fargo
Issued Buy rating and $24 target for BBWI.
- Analyst FirmCiti
Reiterated Buy rating for ONON.
- Analyst FirmBerenberg Bank
Initiated coverage with $38 target for ONON.
