Macy's (M) Stock Down, Nomura Cuts Price Target
NEW YORK (TheStreet) -- Shares of Macy's (M) - Get Report continue to slide, now down 2.34% to $30.64 Thursday afternoon after the department store giant reported a steeper-than-expected slump in sales for its 2016 first quarter.
Before yesterday's market open, Macy's reported that sales fell 7.4% year-over-year to $5.77 billion for the first quarter, missing analysts' expectations of $5.94 billion. Same-store sales fell year-over-year 5.6% compared to estimates of a 3.8% decline.
The company reported adjusted earnings of 40 cents per share, which did beat analysts' expectations of 36 cents per share.
This morning, Nomura decreased its price target on the stock to $45 from $50 but maintained its "buy" rating.
"Macy's continues to face numerous external headwinds including declines in international tourist spending, increases in the savings rate and changing consumer demand," Nomura analysts said in an investor note, adding they do not expect "these issues to improve" in upcoming quarters or in 2017.
Separately, TheStreet Ratings rated Macy's as a "hold" with a score of C+.
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon.
Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
The primary factors that have impacted this rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks.
The company's strengths can be seen in multiple areas, such as its attractive valuation levels, expanding profit margins and notable return on equity.
However, as a counter to these strengths, TheStreet Ratings also finds weaknesses including deteriorating net income, generally higher debt management risk and weak operating cash flow.
You can view the full analysis from the report here: M
