Macy's (M) PT Raised to $19 at CFRA

CFRA analyst Zachary Warring raised the price target on Macy's (NYSE: M) to $19.00 (from $18.00) while maintaining a Hold rating.

The analyst comments "We raise our 12-month price target by $1 to $19, based on 7.2x our FY 25 (Jan.) EPS estimate and in line with the company's 5-year average forward P/E multiple of 7.0x. We raise our FY 25 EPS estimate by $0.15 to $2.65 and raise our FY 26 EPS estimate by $0.20 to $2.80. Macy's posts normalized Q1 EPS of $0.27 vs. $0.56, $0.10 above consensus estimates on revenues of $4.85B vs. $4.98B and $33M above estimates. By brand in Q1, Macy's comparable sales declined 0.4% Y/Y, Bloomingdale's increased 0.3%, and Blue Mercury increased 4.3%. Merchandise margin compressed 100 bps Y/Y due to higher markdowns on warm weather products. Merchandise inventory increased 1.7% Y/Y, which management believes is well positioned for the summer season. Macy's raised the lower end of its full year sales guidance slightly and changed its EPS guidance range to $2.55 to $2.90. Adjusted EPS was still just half of what it was a year ago and the raise in guidance was almost insignificant. We believe shares are fairly valued."

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