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Bath & Body Works is poised for a sharp rebound after pulling back this year, according to Cowen. Cowen upgraded Bath & Body Works to outperform from market perform, as the firm
transferred stock coverage to another analyst. The firm also has an $82 price target on the stock, implying 55% upside from Friday's close. "We like BBWI's growth prospects
relative to valuation and long-term advantages based on product innovation, customer retention, and efficient marketing spend," Cowen analyst Jonna Kim said in a Monday note. Bath &
Body Works shares are down more than 24% this year. However, with inflation rising at its hottest pace in decades, the company's affordable prices could boost the stock, according to
Cowen. "BBWI also has a proven track record of navigating through macro challenges, and is well positioned to fare better in the current environment," Kim said. The company could
also benefit from supply chain snarls. In fact, about 80% of its products are sourced in the U.S. Bath & Body Works was a Covid-19 pandemic winner as demand for sanitizers and scented
candles, among other goods, soared. The company's stock more than doubled in both 2020 and 2021. —CNBC's Michael Bloom contributed reporting.