Macy (M) Q3 Comps 'Impressive', GM Indicates Tough Environment - Wells Fargo

Wells Fargo Wednesday maintained an Market Perform rating on Macy's (NYSE: M) with a price target of $44.00. Analyst Paul Lejuez called Macy's 3.5% comps "impressive," but he remains sidelined given gross margin concerns.

"While Q3 was tough across retail, and M was coming off of a challenging Q2, top-line results for Q3 were strong," said Lejuez. "Still, we believe the comp was in part driven by promotions (GM was down 40bps), though at least the promotions were effective. The stock doesn't look expensive, trading at 10.5x our FY2014E, but we are hesitant to chase this comp driven story going into the highly competitive holiday season."

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 $46.33 yesterday.

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