Macy’s assumed with an Equal Weight at Morgan Stanley

Morgan Stanley analyst Alex Straton assumed coverage of Macy’s with an Equal Weight rating with an unchanged price target of $21 after management lowered Q4 net sales guidance, which it attributed to deeper-than-anticipated lulls during non-peak holiday weeks. Despite weaker sales, Macy’s maintained its Q4 gross margin and EPS guidance, noted Straton, who said his out-year estimates are largely unchanged.