Macy's in August became one of the first major retailers to announce a strategy to contend with industry-wide challenges, and the company is now in the implementation phase of its plan, the firm noted.
"Historically, the stock has marked time as execution versus strategy takes center stage for investors," Credit Suisse stated.
Ultimately, rationalizing Macy's store base should allow Macy's to adjust its fixed cost base for a drop in brick & mortar sales, and should help the company improve sales productivity as well as returns on fewer assets, according to the firm.
The firm maintained its $40 price target on shares of the Cincinnati, OH-based department store operator.
Separately, TheStreet Ratings team rates the stock as a "hold" with a ratings score of C.
Macy's strengths such as its reasonable valuation levels, good cash flow from operations and expanding profit margins are countered by weaknesses including deteriorating net income, generally higher debt management risk and disappointing return on equity.
You can view the full analysis from the report here: M
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 article's author.