Macy's (M) Seen as Winner in Mid-Tier Departmetn Stores; Wells Fargo Upgrades to Outperform
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Price: $19.04 +0.16%
Rating Summary:
9 Buy, 17 Hold, 5 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 17 | Down: 14 | New: 17
Rating Summary:
9 Buy, 17 Hold, 5 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 17 | Down: 14 | New: 17
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Wells Fargo upgraded Macy's (NYSE: M) from Market Perform to Outperform with a price target of $68.00 (from $56.00). Analyst Paul Lejuez said Macy's has emerged as the winner in mid-tier department store world.
"In what was likely one of the most challenging holiday seasons, M performed very well, posting solid comps (+2.3% including licensed departments) and flat merchandise margin in what was a remarkably promotional season. In our view, Q4 proves that they won the battle of the mid-tier department stores, demonstrating the company has the brands consumers want, has leverage with those brands, and is nimble with promotions. This, in addition to the company's steady and strong FCF and SG&A flexibility, prompt our more positive view on the stock," said Lejuez.
"Ten things we like: (1) They won (the battle of the mid tiers), (2) They have the best "team" on the field from a brand perspective, (3) Brands need them, (4) Ability to read and react, (5) Ability to cut expenses when they have to, (6) They are set up to be promotional, (7) The most consistent GM in retail, (8) Most consistent FCF in retail, and they have nothing to do with the money (expect big share repo to continue), (9) It’s inexpensive, and (10) Bloomingdales a valuable asset, in our view," he added.
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 $58.12 yesterday.
"In what was likely one of the most challenging holiday seasons, M performed very well, posting solid comps (+2.3% including licensed departments) and flat merchandise margin in what was a remarkably promotional season. In our view, Q4 proves that they won the battle of the mid-tier department stores, demonstrating the company has the brands consumers want, has leverage with those brands, and is nimble with promotions. This, in addition to the company's steady and strong FCF and SG&A flexibility, prompt our more positive view on the stock," said Lejuez.
"Ten things we like: (1) They won (the battle of the mid tiers), (2) They have the best "team" on the field from a brand perspective, (3) Brands need them, (4) Ability to read and react, (5) Ability to cut expenses when they have to, (6) They are set up to be promotional, (7) The most consistent GM in retail, (8) Most consistent FCF in retail, and they have nothing to do with the money (expect big share repo to continue), (9) It’s inexpensive, and (10) Bloomingdales a valuable asset, in our view," he added.
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 $58.12 yesterday.
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