Nomura Securities Maintains a 'Buy' on Macy's (M); Raising PT & Estimates
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Price: $23.41 -1.8%
Rating Summary:
9 Buy, 19 Hold, 4 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
9 Buy, 19 Hold, 4 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Nomura Securities maintains a 'Buy' on Macy's (NYSE: M) price target raised from $38 to $43.
Analyst, Paul Lejuez, said, "M reported a strong 4Q and guidance implies that the momentum is continuing into F12. Importantly, the guidance does not depend on aggressive assumptions (mgmt expects comps +3.5%, flattish GM, little help from credit), and we believe the company can exceed its expectations. In F11, the company exceeded its initial guidance by over 25% (though we would not look for the same upside in F12, as credit was a big factor in F11). We are increasing our F12E from $3.39 to $3.44 (vs. guidance of $3.25-$3.30) based primarily on higher comps than previously forecast. We are raising our DCF-based TP from $38 to $43, which represents 12.5x our new F12E EPS and ~6.5x our new F12E EBITDA. Importantly, we believe the market needs to start considering a $4.00+ EPS number for F13. We are at $4.04."
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 $36.69 yesterday.
Analyst, Paul Lejuez, said, "M reported a strong 4Q and guidance implies that the momentum is continuing into F12. Importantly, the guidance does not depend on aggressive assumptions (mgmt expects comps +3.5%, flattish GM, little help from credit), and we believe the company can exceed its expectations. In F11, the company exceeded its initial guidance by over 25% (though we would not look for the same upside in F12, as credit was a big factor in F11). We are increasing our F12E from $3.39 to $3.44 (vs. guidance of $3.25-$3.30) based primarily on higher comps than previously forecast. We are raising our DCF-based TP from $38 to $43, which represents 12.5x our new F12E EPS and ~6.5x our new F12E EBITDA. Importantly, we believe the market needs to start considering a $4.00+ EPS number for F13. We are at $4.04."
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 $36.69 yesterday.
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