"I said 30% upside so I'm glad to see them at 50%," retail expert Jan Kniffen said on CNBC's "Squawk on the Street" on Monday morning.
Kniffen believes Macy's is "likely" to be sold and that there is "substantial" upside. "Fifty percent wouldn't surprise me, but it depends on if there's more than one person interested," he added.
Canadian company Hudson's Bay, which purchased Saks Fifth Avenue and Lord & Taylor, is a potential suitor for Macy's. The company's market cap is about one-seventh of Macy's market cap so it would look "unusual" in the marketplace, he noted.
Hudson's Bay has been "very good" at setting up real estate investment trusts to monetize the value of real estate, and it could do the same with Macy's real estate, Kniffen pointed out. The value of Macy's real estate has been a topic of interest, with Starboard Value reporting that it could be worth about $21 billion.
Kniffen believes Macy's real estate has at least $8 billion of recognizable value. This would "pretty much fund the deal," including Macy's debt, as the deal is expected to be "only" about $20 billion in total, he explained. "So I think it could be done by [Hudson's Bay]."