Macy’s Inc. was downgraded to hold from buy at Stifel on concerns about the growing expenses tied to the retailer’s multiplatform investments. The price target is $48. Macy’s reported a disappointing holiday shopping season on Tuesday, though the company said that online business for the year experienced double-digit growth. “Omnichannel sales have grown rapidly but not without significant cost; the investment in the omnichannel venue and fulfillment capabilities and the cost of sales cannibalized from the bricks and mortar stores, deleverages those assets,” Stifel analysts wrote in a Wednesday note. Macy’s also said it is considering real estate deals, but analysts highlight the uncertain timing and gains on those potential ventures. “What is not reflected in the share price is the possibility of significant one-time gains from one or more real estate transactions, likely related to the flagship locations,” analysts wrote. Macy’s shares are down 1.4% in premarket trading, but up 21% for the year so far. The S&P 500 is down 6% for the year-to-date.
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