Jefferies Upgrades Macy's (M) to Buy; Sees More Optionality in Shares
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(Updated - December 18, 2020 8:34 AM EST)
(updated to add analyst comments)
Jefferies analyst Randal Konik upgraded Macy's (NYSE: M) from Hold to Buy with a price target of $14 (from $9), saying they see more optionally that they previously thought.
Konik commented, "In higher GDP expectations for 2021 on discretionary (apparel) spend, we are transferring coverage & upgrading to Buy. We do not expect a recovery to 2019 sales &EBITDA as consumer behavior has forever changed. But we don't see Macy's suffering permanent losses to the magnitude assumed. Big changes are needed to reinvigorate quality sales, but low-capital options exist, esp as a platform for a new class of wholesale brands. We raise our PT from $9 to $14."
The analyst highlighted:
- Upside To Estimates
- Estimates Appear Too Low For Rational Recovery
- COVID Is Not The Death Knell
- New Class of Brands To Backfill Departing Incumbents
- Debt Deleverage Directly Accretes to Equity Value
Shares of Macy's closed at $10.42 yesterday.
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Create E-mail Alert Related CategoriesAnalyst Comments, Hot Comments, Hot Upgrades, Upgrades
Related EntitiesJefferies & Co, Randal Konik
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