Macy’s Hold Rating: Stability Amid Uncertainty and Declining Foot Traffic

Macy’s (M – Research Report), the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst Paul Lejuez from Citi maintained a Hold rating on the stock and has a $11.00 price target.

Paul Lejuez has given his Hold rating due to a combination of factors related to Macy’s current financial performance and market conditions. The company’s expected earnings per share (EPS) for the first quarter are anticipated to align closely with consensus estimates, suggesting stability but not significant growth. Additionally, while management has reiterated their guidance for the first quarter, there is uncertainty about the annual guidance, particularly with the introduction of a new CFO and the current economic environment.
Furthermore, traffic data indicates a decline in foot traffic to Macy’s stores, which could negatively impact sales. Although there is a slight improvement in gross margins due to a pause in tariffs, the overall weak top-line trends and expected share price return of -8.5% contribute to the Hold rating. These elements suggest that while there are some positive aspects, the risks and uncertainties warrant a cautious approach, justifying the Hold recommendation.

According to TipRanks, Lejuez is a 5-star analyst with an average return of 8.9% and a 57.00% success rate. Lejuez covers the Consumer Cyclical sector, focusing on stocks such as Bath & Body Works, On Holding AG, and Abercrombie Fitch.

In another report released yesterday, J.P. Morgan also maintained a Hold rating on the stock with a $13.00 price target.