Macy's (M) PT Lowered to $14 at Citi
Citi analyst Paul Lejuez lowered the price target on Macy's (NYSE: M) to $14.00 (from $16.00) while maintaining a Neutral rating.
The analyst comments "4Q comps were inline w/the holiday sales release and were improved relative to prior qtrs. However, QTD trends point to a comp deceleration, and while some of this may be due to weather, the M consumer seems to be feeling pressure beyond weather. Mgmt has not built in any improvement in the macro backdrop to its guidance which we believe is prudent, but the volatility of trends makes it tougher to manage the business. Mgmt is making the right moves, in our view, by closing stores and focusing on its top locations. And the stock is not expensive. But it isn’t an easy time to be a dept store, a segment of retail we believe faces secular challenges (selling products that can be bought elsewhere), especially when facing near term headwinds. We believe the risk/reward is balanced."