Jefferies Expects a Strong Q1 for Macy's (M) as Customer Spending is Ahead of Expectations

April 22, 2021 9:08 AM EDT
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Price: $19.45 --0%

Rating Summary:
    8 Buy, 14 Hold, 10 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 18 | Down: 8 | New: 32
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Jefferies analyst Stephanie Wissink reiterated a Buy rating and $20.00 price target on Macy's (NYSE: M) after raising estimates on stronger Q1 trends bolstered by stimulus and improving spend from core loyalty customers.

The analyst stated "We also view M as a key beneficiary of a potential fashion cycle led by a shift in bottoms silhouette and a resurgence in denim, as detailed in our team's collaborative note. We have not fully factored in a new fashion cycle into estimates; if one emerges, it's upside." "At a conference last week, M spoke to Q1 results trending "ahead of expectations" supported by stimulus-related strength, new customers, and re-engagement of Star Rewards members. Bronze tier rewards member count is +20% since YE and a meaningful component of new customer growth, while spend is +13% vs. 2019, ~3pts better Q/Q. This segment skews younger, more diverse, and more digitally engaged, helping to drive digital growth acceleration in Q1 vs. 24% '20 growth rate."

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 $16.85 yesterday.

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