Bath & Body Works (BBWI, Financials) shares surged nearly 10% on Tuesday after JPMorgan (JPM, Financials) upgraded the stock, citing an improved outlook for the company's sales and product expansion.

From "neutral," JPMorgan analysts rated the company as "overweight" and lifted the price objective to $47 from $41. Following a post-pandemic downturn, the company claimed demand for Bath & Body Works' basic productsincluding hand sanitizers and candleshas steadied. Analyzers think the worst of the sales drop is past and hope for more consistent performance moving forward.

With its biggest-ever Disney partnership, which includes 85 perfumed items inspired by Disney Princesses, Bath & Body Works is upgrading its product offers. Three times bigger than past collaborations, like Netflix-themed collections for "Bridgerton" and "Stranger Things," the new line is According to JPMorgan analysts, the cooperation may stimulate full-price sales, thereby increasing profits.

While maintaining a solid position in the fragrance and hand sanitizer categories, the company also observed that Bath & Body Works is still underpriced compared to other beauty and personal care firms. The stock update comes before the company's Feb. 27 fourth-quarter results.