Balanced Risk/Reward at Macy’s: Operational Momentum Offset by Below-Consensus 2026 Outlook, Justifying a Hold Rating

Oliver Chen, an analyst from TD Cowen, maintained the Hold rating on Macy’s. The associated price target is $20.00.

Oliver Chen has given his Hold rating due to a combination of factors, balancing encouraging operational momentum with tempered forward expectations. Macy’s delivered an earnings beat and stronger-than-expected comparable sales, supported by better margins and improving performance in its Reimagine stores and luxury banners, particularly Bloomingdale’s and Bluemercury, while cash generation and inventory discipline remain notable positives.

However, Chen highlights that management’s fiscal 2026 earnings and comp guidance sits below consensus, and the path to sustained, broad-based positive comps is still uncertain despite localized strength in go-forward initiatives. With the stock trading modestly above its three-year average valuation and the price target nudged down to $20, he sees a balanced risk/reward profile, warranting a Hold rather than a more aggressive rating at this stage.

In another report released yesterday, J.P. Morgan also maintained a Hold rating on the stock with a $21.00 price target.