UBS: Macy's (M) Expected to Continue to Lose Market Share, Earnings to Be Pressured

UBS analyst Jay Sole reiterated a Sell rating and $9.00 price target on Macy's (NYSE: M).

The analyst commented, "We believe Macy's will continue to lose market share due to sizeable challenges vs. peers around price, product and service. M's 1Q report reinforced our conviction in this view. While 1Q EPS came in better than expected, M's comp sales growth of 3% y/y still underperformed the Off-Price channel indicating continued market share loss. We expect earnings to remain pressured over the next few years and forecast a 1% 5-yr EPS CAGR (FY25-FY30E). We expect consensus EPS to move lower over the NTM as weak sales and opex deleverage pressure earnings. We believe this will hurt sentiment and drive the stock toward our $9 price target."

For an analyst ratings summary and ratings history on Macy's click here. For more ratings news on Macy's click here.

Shares of Macy's closed at $21.80 yesterday.

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