Macy’s price target raised to $21 from $15 at Telsey Advisory

Telsey Advisory analyst Dana Telsey raised the firm’s price target on Macy’s to $21 from $15 and keeps a Market Perform rating on the shares. The company reported “solid execution” through the holiday period and delivered “better-than-expected” results, but its FY24 EPS guidance midpoint fell short of prior consensus, the analyst tells investors. New CEO Tony Spring’s plans are encouraging, with plans to close 150 underperforming stores, grow luxury stores, and unlock $600M-$750M from asset monetization, the firm adds. Furthermore, management expects it can grow comps by low single-digits starting FY25, Telsey notes. Telsey maintains in Market Perform rating, noting that cutting the company’s store base to a more manageable size is prudent.