Macy’s Stock (NYSE: M) Gains Upgrade, with $20 Price Target

Macy's Inc. (NYSE: M) shares have experienced an uplift of 0.54% in this morning's pre-market following an upgrade from Gordon Haskett from Hold to Buy. A $20 price target has been established, indicating a potential upside of over 20% from the current levels of $16.65.

Analysts at Gordon Haskett have conveyed a strong sense of confidence in the department store chain, attributing their optimistic upgrade to Macy's “very upbeat” commentary on current business trends. The firm anticipates that Macy's will report its first positive comparable store sales since Q1 of 2022 in the upcoming fourth quarter. Furthermore, the expected colder weather could enhance Macy's seasonal sales performance, while the presence of an activist investor is predicted to stabilize the stock price over the subsequent 6 to 12 months period.

Macy's, headquartered in New York, NY, is a prominent player in the Consumer Cyclical sector, operating as an omni-channel retail organisation. The company's operations encompass a broad assortment of merchandise, including apparel, accessories, cosmetics, and home furnishings, which are sold through their Macy's, Bloomingdale's, and Bluemercury brands, not to mention their licensed operations in Dubai and Kuwait.

The company has a market capitalization of $4.60 billion, with a 52-week range of $14.06 to $22.10. Financially, Macy's is operating with a trailing P/E ratio of 27.15 and a forward P/E ratio of 6.95. The dividend rate stands at $0.69, yielding 4.16%, supported by a payout ratio of 104.34%. The company's most recent figures show a total revenue of $23.51 billion, with net income to common of $184 million.

Institutional holdings in Macy's are significant with insiders holding approximately 0.70% and institutions holding 78.21% of the stock. There are 277.64 million shares outstanding with a float of 275.06 million. Analysts have set a mean target price of $17.36 for the stock, with a consensus rating of “Hold” based on 11 analyst opinions.

Macy's Inc. sees enhanced investor optimism following Gordon Haskett's upgrade and positive comments on business trends. The company’s robust positioning in the retail market and potential for continued growth in sales as indicated by analyst insights, suggest that Macy's could be one to watch as the year progresses.