The firm lowered its valuation range to $60-$64 from $64-$68 for the department store company.
Wells Fargo set annual EPS estimates to $4.36 from $4.39 for fiscal 2014, and to $4.81 from $5.07 for fiscal 2015.
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"We believe it will be challenging for M to improve margins from here, making net income growth dependent on the top-line," said Well Fargo Senior Analyst Paul Lejuez. "While we continue to believe M is the winner in the mid-tier dept store space ("the nicest house"), it is not an easy neighborhood to live in."
Shares of Macy's are down 0.11% to $61.50 in early afternoon trading on Thursday.
Separately, TheStreet Ratings team rates MACY'S INC as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate MACY'S INC (M) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, solid stock price performance, growth in earnings per share and increase in net income. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."