Macy’s (NYSE:M) reported better-than-expected third-quarter results yesterday which received mixed reactions from Wall Street analysts. Since the release, two analysts have rated M stock as a Buy, two have given it a Hold, and one analyst has assigned a Sell rating.
Macy’s is a retail chain known for its diverse range of fashion, accessories, and home goods.Top of Form
Analyst Oliver Chen from TD Cowen’s Buy rating centers on Macy’s growth potential, fueled by new store formats, personalized strategies, and consistently strong inventory management. Chen remains optimistic about the company’s Q4 outlook, specifically in sectors like beauty and gifting, along with sufficient inventory levels.
Furthermore, a Top-rated analyst Robert Drbul from Guggenheim maintained a neutral stance on M stock. The analyst noted weakness in Macy’s credit card revenues due to higher bad debt assumptions. Also, Drbul holds a conservative view on discretionary spending at the company due to the expected continuation of promotions and markdowns amid a competitive Q4 environment.