Nomura Securities Maintains a 'Buy' on Macy's (M); Incremental Info and Updated Q3 Thoughts

Nomura Securities maintains a 'Buy' on Macy's (NYSE: M) price target of $38.00.

Nomura analyst, Paul Lejuez, said, "M reported a strong quarter, and we believe the company is well positioned for holiday. One concern of the market is the below-consensus 4Q guidance, but we believe it will prove conservative. Importantly, the company repurchased $221MM in 3Q, which was above our $50MM estimate. We believe M will repurchase a significant amount of stock in F12 (our estimate is $1.5BN), but the earlier timing of the repo in 3Q shows a larger repo could happen sooner than expected (we now expect $500MM in F12). We are increasing our F11E from $2.70 to $2.82 (due to 3Q beat) and our F12E from $3.32 to $3.39 (helped by earlier-than-expected share repo). M remains our top pick in the sector."

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

Shares of Macy's closed at $30.45 yesterday.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• BNP Paribas Exane Downgrades Lanxess AG (LXS:GR) (LNXSF) to Underperform
• Deutsche Bank Downgrades Oxford Biomedica (OXB:LN) (OXBDF) to Hold
• UBS Downgrades Scor SE (SCR:FP) (SCRYY) to Sell