Nov 6 (Reuters) - J.P Morgan raised Macy's Inc to 'overweight' from 'neutral,' citing improving monthly comparable store sales at the department store operator and a potential for earnings upside.
'We expect a healthy EPS beat in the third quarter ...and see potential upside to fourth-quarter earnings,' the brokerage said.
With improving same-store sales trends, higher-margin private label and exclusive products outperforming, and SG&A dollars remaining down year-over-year, Macy's is poised to beat current consensus estimates materially, the brokerage added
The 'My Macy's' localization initiative and an improving New York City shopping backdrop would help improve top-line results, the brokerage wrote in a note to clients.
The brokerage also raised its price target on the stock by $4 to $23.
Cincinnati-based Macy's stock was up 3 percent at $18.50 Friday in trading before the bell. It closed at $18.02 Thursday on the New York Stock Exchange.
(Reporting by Vidya Lakshmi in Bangalore; Editing by Jarshad Kakkrakandy) Keywords: MACYS/RESEARCH JPMORGAN (vidya.lakshmi@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: vidya.lakshmi.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
'We expect a healthy EPS beat in the third quarter ...and see potential upside to fourth-quarter earnings,' the brokerage said.
With improving same-store sales trends, higher-margin private label and exclusive products outperforming, and SG&A dollars remaining down year-over-year, Macy's is poised to beat current consensus estimates materially, the brokerage added
The 'My Macy's' localization initiative and an improving New York City shopping backdrop would help improve top-line results, the brokerage wrote in a note to clients.
The brokerage also raised its price target on the stock by $4 to $23.
Cincinnati-based Macy's stock was up 3 percent at $18.50 Friday in trading before the bell. It closed at $18.02 Thursday on the New York Stock Exchange.
(Reporting by Vidya Lakshmi in Bangalore; Editing by Jarshad Kakkrakandy) Keywords: MACYS/RESEARCH JPMORGAN (vidya.lakshmi@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: vidya.lakshmi.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
