BofA/Merrill Lynch Downgrades Macy's (M) to Neutral on Slowing Growth

BofA/Merrill Lynch downgraded Macy's (NYSE: M) from Buy to Neutral while maintaining a price target of $65 on slowing growth.

Analyst Lorraine Hutchinson said the downgrade comes as their thesis around upward estimate revisions and multiple expansion has played out. She notes earnings growth has slowed to 8% from a 30% F2010-13 CAGR as sales growth decelerates off a high base and EBITDA margin nears the 14% target. Further the analyst notes the multiple has expanded from 4.6x to 6.8x EV/EBITDA since late 2010.

For an analyst ratings summary and ratings history on Macy's click here. For more ratings news on Macy's click here.

Shares of Macy's closed at $61.61 yesterday.

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