Cautious Hold Rating on Macy’s Amid Strategic Uncertainty and Market Challenges

Morgan Stanley analyst Alexandra Straton maintained a Hold rating on Macy’s (M – Research Report) today and set a price target of $12.00.

Alexandra Straton’s rating is based on a combination of factors, primarily focusing on Macy’s current strategic position and market valuation. Despite Macy’s achieving a slight earnings beat driven by sales in the first quarter, the company’s fundamentals remain under pressure. The management’s new strategic initiatives are still in their early stages, and the recent departure of a key executive adds to the uncertainty surrounding their execution.
Straton also highlights potential risks, including macroeconomic challenges and tariff headwinds, which could impact future earnings. The company’s valuation, while depressed, reflects these uncertainties and suggests that the market has already factored in the current challenges. As a result, Straton maintains a Hold rating, with a price target of $12, indicating a cautious outlook until more concrete evidence of a turnaround is visible.

Straton covers the Consumer Cyclical sector, focusing on stocks such as On Holding AG, Lululemon Athletica, and Ross Stores. According to TipRanks, Straton has an average return of 7.9% and a 64.57% success rate on recommended stocks.

In another report released today, Citi also maintained a Hold rating on the stock with a $12.00 price target.