Paul Lejuez, an analyst from Citi, maintained the Hold rating on Macy’s. The associated price target remains the same with $12.00.
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Paul Lejuez has given his Hold rating due to a combination of factors impacting Macy’s performance. The company’s second-quarter sales and earnings per share (EPS) are anticipated to align closely with market expectations, albeit with a slight decline in revenue compared to consensus estimates. This is influenced by a decrease in comparable store sales and a notable reduction in foot traffic during the months of June and July, as indicated by Placer traffic data.
Despite management’s indications of improved trends in May, the overall cautious outlook on consumer behavior and the deceleration in department store category sales, as reflected in Citi credit card data, contribute to a conservative stance. The expectation that management will maintain their full-year guidance, despite potential trend deceleration, suggests limited stock movement, reinforcing the Hold rating. This cautious approach is further supported by the anticipated reiteration of guidance and the minimal expected change in stock price, similar to previous quarters.
M’s price has also changed slightly for the past six months – from $14.510 to $13.360, which is a -7.93% drop .