Bath & Body Works Inc. (NYSE:BBWI) shares plummeted 5.12% in pre-market trading on Friday following disappointing third-quarter earnings and a slashed full-year outlook. The personal care and home fragrance company's stock price decline comes amid a flurry of analyst downgrades and price target cuts, reflecting growing concerns about the company's near-term prospects.

The company reported third-quarter adjusted earnings per share of 35 cents, falling short of the Street view of 40 cents. Quarterly sales of $1.594 billion, down 1% year over year, also missed the analyst consensus estimate of $1.634 billion. CEO Daniel Heaf acknowledged that the results were below expectations and announced a lowered outlook for the remainder of the year, citing current business trends and ongoing macro consumer pressures.

In response to the earnings report, several major financial institutions downgraded Bath & Body Works stock and significantly reduced their price targets. Morgan Stanley cut the stock to Equal-Weight from Overweight and slashed its price target to $18 from $43. Goldman Sachs downgraded the stock from Buy to Neutral, adjusting its price target from $39 to $17. Other institutions, including Barclays, Citigroup, and JP Morgan, also lowered their price targets, reflecting a pessimistic outlook on the company's near-term performance. The wave of downgrades and reduced price targets has further fueled the stock's decline, as investors reassess the company's growth prospects in light of challenging market conditions and weakening consumer sentiment.