Macy’s (M – Research Report), the Consumer Cyclical sector company, was revisited by a Wall Street analyst on March 7. Analyst Alexandra Straton from Morgan Stanley maintained a Hold rating on the stock and has a $14.00 price target.
Alexandra Straton’s rating is based on a combination of factors that reflect both the progress and challenges faced by Macy’s. Despite advancements in Macy’s strategic initiatives, the company’s guidance for 2025 suggests ongoing fundamental challenges, with potential risks to earnings forecasts. The guidance includes an acceleration in comparable sales post-first quarter, which may require more significant sacrifices in gross margin and selling, general, and administrative expenses than anticipated.
Straton notes that while Macy’s delivered a strong earnings performance in the fourth quarter, driven partly by one-time items such as credit card revenues and asset sale gains, the overall fundamentals remain weak. The retail environment is challenging, and the quarterly results are expected to be volatile as Macy’s continues its transformation. Given these dynamics, along with Macy’s low valuation and healthy balance sheet, Straton maintains a Hold rating, suggesting that the stock is likely to remain range-bound at its current levels until more clarity on the turnaround is achieved in late 2025 or 2026.
Straton covers the Consumer Cyclical sector, focusing on stocks such as On Holding AG, Macy’s, and Victoria’s Secret. According to TipRanks, Straton has an average return of 3.9% and a 54.72% success rate on recommended stocks.
In another report released on March 7, TD Cowen also maintained a Hold rating on the stock with a $14.00 price target.