BTIG analyst Robert Drbul has assigned their neutral stance on M stock, giving a Hold rating today.
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Robert Drbul has given his Hold rating due to a combination of factors tied to Macy’s recent performance and valuation. The company delivered fourth-quarter results slightly ahead of his expectations, with modest like-for-like sales growth, solid gross margin execution, and better-than-anticipated operating profitability, helped by strength at Bloomingdale’s and continued digital momentum.
At the same time, Drbul is cautious about the outlook, as overall revenue is expected to be flat to slightly lower and EPS forecasts have been trimmed on higher SG&A, even though margins should gradually improve. With the stock already trading at a forward P/E multiple above its five-year average, he sees the current price as appropriately reflecting these mixed fundamentals, leaving limited upside and supporting a neutral, or Hold, stance rather than a more decisive Buy or Sell call.
In another report released today, TD Cowen also assigned a Hold rating to the stock with a $20.00 price target.
M’s price has also changed slightly for the past six months – from $17.610 to $17.720, which is a 0.62% increase.