Shares of the Columbus, Ohio, company were rising 7.2% to $63.56 on Thursday.
Bath & Body Works beat analysts' estimates in its latest quarterly report after the bell Wednesday.
The company also forecast third-quarter earnings per share between 55 cents and 60 cents, excluding one-time costs related to the spinoff of Victoria's Secret.
MKM Partners analyst Roxanne Meyer, who has a buy rating and a $78 share price target, said the company's guidance puts a "wrench in the bear case."
Meyer said that while supply chain delays could hamper sales upside potential in the second half, she viewed Bath & Body Works "as best positioned to meet demand given its primarily domestic-based supply chain and modest pricing power."
"We continue to see meaningful opportunity for longer-term sales growth, for non-operating levers to enhance the earnings algorithm, and for the stock to be re-rated higher," the analyst said.
BMO analyst Simeon Siegl, who has an outperform rating and a $90 price target on the stock, said that "although there is no denying BBW’s strength and consistency, questions surrounded the level of revenue decline the company would face as it laps its incredible pandemic strength.”
But with third-quarter revenue guidance above the consensus number, and a management team “historically inclined to guiding conservatively,” Siegel said he expects investors to “breathe out, allowing for the expected multiple re-rating to begin."
Telsey Advisory's Dana Telsey, who has an outperform rating and a $74 price target, said that "while the pandemic acted as an accelerant to its soaps and sanitizers business, other categories have also seen recent success.”
The analyst believes some changes in consumer habits during the pandemic may not be temporary, particularly as the delta variant surges.
This was the last quarter of combined results for Bath & Body Works and Victoria’s Secret (VSCO) - Get VICTORIA'S SECRET & COMPANY Report, which was spun out into a separate company on Aug. 3, after the end of the second quarter. The two companies were formerly part of L Brands.
Victoria's Secret swung to a second-quarter profit from a year-earlier loss as sales jumped from a pandemic-hit year-earlier period but eased from the pre-pandemic second-quarter.