03:02 PM EST, 11/07/2024 (MT Newswires) -- Bath & Body Works' ( BBWI ) current fundamentals are "good enough" to allow the company to deliver Q3 earnings in line with expectations, UBS said in an earnings preview Thursday.

According to the firm, sentiment around the stock was mixed, with the "bar" for the earnings event being the company reporting Q3 results in-line and reaffirming its full-year 2024 guidance of $3.06 to $3.26 per share.

UBS said its research indicated that the company's Q3 US store sales growth should rise by low single digits.

"This implies [Bath & Body Works ( BBWI )] is trending towards a small miss vs. the sell-side's +2.7% Q3 store sales growth outlook," the firm said.

UBS said the options market was pricing a 12.2% change in the stock's price in either direction following the earnings release versus an 6.3% historical average move. The brokerage expects less than 12.2%.

The firm had neutral rating on the stock with a 12-month price target of $38.

Price: 31.85, Change: +0.09, Percent Change: +0.30