Cautious Optimism for Macy’s Amidst Uncertainty: Hold Rating with $16 Price Target

In a report released today, Alexandra Straton from Morgan Stanley maintained a Hold rating on Macy’s, with a price target of $16.00.

Alexandra Straton’s rating is based on a combination of factors that reflect both potential and uncertainty in Macy’s future performance. While there are promising signs, such as initiatives within Macy’s banner and the potential of Bloomingdale’s and Bluemercury as undervalued assets, there remains a need for more concrete evidence of a successful turnaround. The management’s messaging on demand, discounting, and tariffs has remained consistent, but the path to improved growth and profitability is not yet clear.
Straton acknowledges the positive developments seen in the second quarter of 2025, but maintains a cautious stance due to limited confidence in Macy’s ability to sustain growth and achieve positive earnings per share revisions in the coming years. The stock is viewed as a ‘show-me’ story, with its valuation likely to remain low until investors can distinguish between ongoing and non-ongoing performance. The earliest potential catalyst for change is expected around the first quarter of 2026, leading to the Hold rating with a price target of $16.

According to TipRanks, Straton is a 3-star analyst with an average return of 4.4% and a 54.23% success rate. Straton covers the Consumer Cyclical sector, focusing on stocks such as On Holding AG, Lululemon Athletica, and Macy’s.

In another report released on October 6, Goldman Sachs also maintained a Hold rating on the stock with a $16.50 price target.