Jefferies Reiterates a Hold Rating on Macy’s Inc

By Jason Carr

In a report released yesterday, Randal Konik from Jefferies reiterated a Hold rating on Macy’s Inc (NYSE: M), with a price target of $40. The company’s shares closed yesterday at $40.53, close to its 52-week high of $45.50.

Konik said:

“3Q showed encouraging signs, with mgmt commentary pointing to SSS and margin improvement extending into 4Q. We were particularly encouraged by the sequential pick-up in apparel and tourist spending. M’s strategic initiatives are showing progress and the NT picture looks more encouraging, but we remain at Hold given LT concerns around competition and investments limiting EPS upside.”

According to, Konik is a 2-star analyst with an average return of 0.3% and a 46.6% success rate. Konik covers the Services sector, focusing on stocks such as Eros International, Abercrombie Fitch, and ClubCorp Holdings.

Currently, the analyst consensus on Macy’s Inc is Moderate Buy and the average price target is $41.50, representing a 2.4% upside.

In a report issued on November 1, Stifel Nicolaus also reiterated a Hold rating on the stock with a $38 price target.

Based on Macy’s Inc’s latest earnings report for the quarter ending October 31, the company posted quarterly revenue of $5.63 billion and quarterly net profit of $17 million. In comparison, last year the company earned revenue of $5.87 billion and had a net profit of $118 million.

Based on the recent corporate insider activity of 25 insiders, corporate insider sentiment is negative on the stock. Most recently, in March 2016, Terry Lundgren, the Chairman & CEO of M sold 177,352 shares for a total of $7,709,491.

Macy’s, Inc. engages in the operation of stores, websites, and mobile applications. It operates its business under the brand names Macy’s, Bloomingdale’s, and Bluemercury, which sells merchandise, including apparel and accessories, cosmetics, home furnishings, and other consumer goods. The firm also provides various support functions to the company’s retail operations through its subsidiaries namely, FDS Bank; Macy’s Systems and Technology, Inc; Macy’s Merchandising Group, Inc; and Macy’s Logistics and Operations. The company was founded by Rowland Hussey Macy Sr. on March 6, 1929 and is headquartered in Cincinnati, OH.