What Do Analysts Think About Macy's Stock (M) After Earnings?
Macy's (M) stock movement was low on Thursday after analysts updated their coverage of the retail company following its latest earnings report.
Confident Investing Starts Here:
Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions
Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter
Five-star Benchmark Co. analyst Fawne Jiang initiated coverage of M stock with a Buy rating.
J.P. Morgan analyst Matthew Boss reiterated a Hold rating and cut his price target to $12 from $13, roughly matching the stock's current price.
Telsey Advisory analyst Jason Strominger reiterated a Hold rating and reduced his price target to $14 from $15, suggesting a 16.6% upside.
Five-Star Citi analyst Paul Lejuez maintained a Hold rating but increased his price target to $12 from $11.
Four-star Morgan Stanley analyst Alexandra Straton reiterated a Hold rating and $12 price target.
Barclays analyst Paul Kearney also kept a Hold rating and $12 price target for the shares.
TipRanks AI analyst Spark upgraded M stock to Buy with a $13.50 price target, implying a 12.5% upside.
Macy's Earnings Recap
The largely neutral coverage of M stock makes sense in light of the company's latest earnings report. Its results for Q1 2025 beat estimates, but Macy's cut its Fiscal 2025 guidance.
This left investors unsure about its performance, as adjusted earnings per share of $1.80 would miss Wall Street's estimate of $1.92, but revenue of $21.2 billion would surpass analysts' estimate of $21.03 billion.
M stock was up 0.17% as of Thursday morning, but remains down 28.02% year-to-date. The shares have also dropped 37.3% over the past 12 months.
Is Macy's Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts' consensus rating for Macy's is Hold, based on one Buy, 10 Hold, and a single Sell rating over the past three months. With that comes an average M stock price target of $11.91, representing a potential 1.04% downside for the shares. These ratings and price targets could change as more analyst updates roll in.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Wall Street Journal
9 hours ago
- Wall Street Journal
What's News in Earnings: Retailers Scramble to Respond to Tariffs - What's News
Hannah Erin Lang hosts this special bonus episode of What's News in Earnings, where we dig into companies' earnings reports and analyst calls to find out what's going on under the hood of the American economy. Bonus Episode for June 2. President Trump's tariffs plans pose an enormous challenge for U.S. retailers like Macy's, Target and Best Buy. Some companies are working to move production out of China, others are negotiating with suppliers or even lifting prices for customers as the trade upheaval scrambles profit forecasts. Investors and analysts also want to know: As tariff turmoil ripples across the U.S. economy, are Americans still shopping? WSJ reporter Suzanne Kapner discusses what companies are saying in earnings reports and analyst calls. Full Transcript This transcript was prepared by a transcription service. This version may not be in its final form and may be updated. Hannah Erin Lang: Hey listeners, it's Monday, June 2nd. I'm Hannah Erin Lang for The Wall Street Journal, and this is What's News in Earnings, our look at the broad themes that stood out in the latest earnings season. Today we're taking a look at retailers. Stores like Macy's, Kohl's, and Best Buy have been caught in the crosshairs of President Trump's tariff war. Executives are navigating supply chain disruptions and potential cost increases as a result of tariff policies, in addition to fielding concerns about American consumers and whether or not a weakening economy could shrink household budgets and eventually put a dent in sales. Though the complete impact of tariffs is yet to be determined, the policy is now facing legal challenges in federal courts, many retail executives are scrambling to respond to the new landscape of global trade. To break down what we've learned from retailers in the first quarter, we're here with Suzanne Kapner. Suzanne writes about the retail industry for The Wall Street Journal here in New York. Suzanne, thanks for joining us today. Suzanne Kapner: Thanks for having me. Hannah Erin Lang: So what did we hear from retailers about how they are responding to tariffs and the related challenges this earnings season? What stood out to you? Suzanne Kapner: Well, retailers have been working really hard to offset the impact of tariffs, mostly by diversifying their supply chains. They are all moving production out of China into other lower tariff countries like Vietnam, Bangladesh. Some are even trying to move minimal production back to the U.S., but that's very small. Macy's, for instance, said it had delayed or canceled some orders out of China. And Gap said they're actually planning to double the amount of American-grown cotton it buys. So they're working with a variety of levers. They're also trying to wring some concessions out of their suppliers, and some are looking at price increases. Hannah Erin Lang: That's one big question when we talk about retail earnings, possibly a big question as retail customers as well, who shop at these stores, whether or not we're going to see retail companies raise prices for customers on store shelves as a result of tariff-related costs. A few companies have already opted to do this. Walmart has said it plans to raise prices this month, maybe early this summer as well. Target has mentioned this might be on the table. What have other retail executives told us about what might happen with prices for shoppers? Suzanne Kapner: Yeah, it's really been across the board from Walmart to Ralph Lauren, companies are talking about price increases. But these are not across-the-board hikes. They're what companies describe as surgical. So they are looking at price elasticity of products, and certain products maybe can bear an increase while others can't. They're afraid demand will dry up. If they raise prices, let's say on a t-shirt, that's a very commoditized item, but maybe a handbag that is hot and in demand, they have a little more pricing power. So this is the exercise companies are working on going through their inventory and seeing where they can raise prices, where they can't. One notable exception is Gap, which said they have no current plans to raise prices in any meaningful way. Their concern that their consumer is a middle market, moderate consumer and they don't want to price themselves out of their consumer's reach. Hannah Erin Lang: You've written about some of the different ways that retail businesses of all sizes have scrambled to respond to what can be a really rapidly shifting trade landscape. What are some of the different tactics that retailers are trying to adjust in response to all of these tariff related challenges? Suzanne Kapner: Well, it's been such a fluctuating situation that retailers have had to change their strategies on a dime. You had some of them canceling or delaying shipments from China when tariffs were at 145% and instead relying on goods that they had already shipped into the U.S. Then when we had that pause and tariffs on Chinese imports fell to about 30% in May, a lot of companies were rushing to get the shipments that they had paused into the U.S. during this 90-day window, and they've been pressuring suppliers to eat some of the costs. They've been trimming their own costs to stay as lean as possible. The safest bet for these companies is just to continue shifting production out of China. Gap, for instance, at the end of their last fiscal year, which was February, they produced about 10% of their goods in China. Going forward, by the end of this current fiscal year, that will be down to 3%. Nevertheless, Gap really surprised the market when it said that the extra costs from tariffs would be about 300 million this fiscal year. Now they are able to offset about more than half of those, but analysts were really still surprised at the size of the tariff related costs and pushed Gap stock down quite a bit. So even though companies are really scrambling to mitigate, they could still get punished here. Hannah Erin Lang: It seems like all this talk of prices potentially going up is spurring some customers to rush to make purchases now. It's something Macy's CEO Tony Spring mentioned in the company's earnings call last week. Tony Spring: There is this mentality that I've got to buy something now. Maybe that's a part of some of the growth we've seen in fine jewelry, for instance, maybe some of the big ticket areas where there's more uncertainty around the size of the impact of pricing changes that may come over the course of the year. Suzanne Kapner: The truth is it's very hard for retailers to know exactly what is driving spending, and as Macy's CEO said, he thinks that there is some pull forward purchases of big ticket items like mattresses, furniture and jewelry ahead of possible tariff related price increases. But Gap on the other hand, has said that it hasn't noticed any stockpiling at all, and I haven't heard too many companies say that they're seeing this pull forward buying. Hannah Erin Lang: I feel like this connects to another reason why investors pay such close attention to retail earnings in particular, which is that it can offer us clues about the economy and whether or not households are shopping less, maybe feeling strained financially. I know it's one reason why I pay attention to retail earnings as a markets reporter. Are retailers seeing signs of consumer distress? Is that something you heard frequently on the calls you're listening to? And how would you describe the health of the American consumer right now based on what we've been hearing? Suzanne Kapner: It's a very bifurcated picture. The lower end consumer has been under pressure now for several years, since inflation started to spike up, and any tariff related additional costs are just going to come on top of that. Target and Kohl's, for instance, said they consumers are under pressure. They're being more choosy in what they buy. But at the higher end, like Ralph Lauren and Coach and some of these brands that appeal to more affluent consumers, say they are seeing more full price buying by their customers, that their customers have an appetite to spend up. So you're really seeing the tale of two consumers, the wealthy and the less wealthy. Hannah Erin Lang: And the wealthy consumers are still spending. Suzanne Kapner: The wealthy are still spending, yes. And the lower income are a bit strapped. With Target and Kohl's, they've both kind of called out their consumers being under pressure. But it's also no coincidence that both those companies are struggling from their own missteps. Target, for instance, had to deal with a boycott from its customers over its DEI programs. That could have contributed to some of its sales weakness. Hannah Erin Lang: By the way, you can hear more about that Target consumers boycott that Suzanne mentioned in our special two episode series Boycotting Target. We'll leave a link to the series in the show notes. Suzanne, have any other major retailers gone so far as to cut or adjust their earnings guidance for the rest of the year, and what are we hearing from executives about what might lie ahead in 2025, even as the details of U.S. trade policy are still changing quite rapidly? Suzanne Kapner: Now, retailers are being very cautious about the coming year and some have withheld guidance altogether due to tariff uncertainty. Others like Macy's and Abercrombie have reduced their profit or sales guidance for the year. So there is definitely a tempering of expectations as the year progresses. A lot of them are expecting rising tariff related costs, and that should hit them at the back end of the year. Hannah Erin Lang: Suzanne, thank you so much for coming on the show. Suzanne Kapner: Thanks for having me. I appreciate it. Hannah Erin Lang: And that was What's News in Earnings. Today's show was produced by Zoe Kuhlkin and Anthony Bansie with supervising producer Michael Kosmides. Additional sound courtesy of S&P Global Market Intelligence. Later today, we'll have the P.M. Edition of What's News out for you as usual. I'm Hannah Erin Lang. Have a great day.
Business Insider
13 hours ago
- Business Insider
Daiichi Sankyo Company (DSKYF) Receives a Buy from Bernstein
Bernstein analyst Miki Sogi maintained a Buy rating on Daiichi Sankyo Company (DSKYF – Research Report) yesterday and set a price target of Yen6,400.00. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter According to TipRanks, Sogi is an analyst with an average return of -1.9% and a 45.45% success rate. Sogi covers the Healthcare sector, focusing on stocks such as Daiichi Sankyo Company, Astellas Pharma, and Chugai Pharmaceutical Co. The word on The Street in general, suggests a Strong Buy analyst consensus rating for Daiichi Sankyo Company with a $40.43 average price target. The company has a one-year high of $44.64 and a one-year low of $20.15. Currently, Daiichi Sankyo Company has an average volume of 76.67K.
Business Insider
13 hours ago
- Business Insider
J.P. Morgan Sticks to Its Buy Rating for RENK Group AG (R3NK)
In a report released today, David Perry from J.P. Morgan maintained a Buy rating on RENK Group AG (R3NK – Research Report), with a price target of €87.50. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter According to TipRanks, Perry is a 5-star analyst with an average return of 14.9% and a 65.12% success rate. Perry covers the Industrials sector, focusing on stocks such as Rheinmetall, Airbus Group SE, and BAE Systems. In addition to J.P. Morgan, RENK Group AG also received a Buy from Jefferies's Chloe Lemaire in a report issued on May 27. However, on May 15, Warburg Research maintained a Hold rating on RENK Group AG (XETRA: R3NK). The company has a one-year high of €80.41 and a one-year low of €17.71. Currently, RENK Group AG has an average volume of 1.73M. Based on the recent corporate insider activity of 10 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of R3NK in relation to earlier this year.
