In a report released yesterday, Robert Drbul from Guggenheim reiterated a Buy rating on Macy’s Inc (M), with a price target of $30. The company’s shares opened today at $21.80, close to its 52-week low of $21.08.
Drbul commented:
“We think annual comp gains of ~1% are achievable as initiatives such as Backstage continue to perform well, positively impacting brick and mortar sales. At 7x our 2019E EPS, we see value. Total sales declined 0.7% to $5.50bn as the +0.7% comp (O+L basis) was offset by store closures. The company’s strategic initiatives continue to fuel growth, while digital remained strong (+DD% increase) and benefitted from of online sales were from Vendor Direct) and mobile growth. The comp was driven by transaction growth (+5.7%) and was offset by UPT (-2.2%) and AUR (-2.7%). AUR was up against difficult YoY comparisons and was impacted by a strong Backstage performance and efforts to clear through spring receipts. International tourist sales were down 3.1%, but an improvement from the Fall season.”
According to TipRanks.com, Drbul is a 5-star analyst with an average return of 10.3% and a 66.1% success rate. Drbul covers the Services sector, focusing on stocks such as National Vision Holdings Inc, Ascena Retail Group, and Ralph Lauren Corp.
Currently, the analyst consensus on Macy’s Inc is a Hold with an average price target of $24.60.
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Macy’s Inc’s market cap is currently $6.67B and has a P/E ratio of 6.11. The company has a Price to Book ratio of 1.04.
Based on the recent corporate insider activity of 6 insiders, corporate insider sentiment is negative on the stock.
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Macy’s, Inc. engages in the retail of apparel, accessories, cosmetics, home furnishings, and other consumer goods. Its brands include Macy’s, Bloomingdale’s, and Bluemercury. It offers men’s, women’s, and children’s apparel, women’s accessories, intimate apparel, shoes, cosmetics, fragrances, as well as home and miscellaneous products.
