Macy’s Inc. shares are up 1% after it was upgraded on Wednesday to buy from neutral at Citi based on the retailer’s plan to shut 100 stores. The bank kept the price target at $44. Citi believes that “rationalizing its store fleet” puts the retailer in a better position to compete in a difficult market. “The move also shows management is thinking the right way strategically about how to enhance shareholder value longer term, as many stores to close are not earning an adequate return on invested capital,” the note said. Citi analysts also think Macy’s is “one of the stronger horses in the race,” with easier year-over-year comparisons and the potential for seasonal weather, compared with last year’s unseasonable temperatures, over the next few quarters. Macy’s shares are down 39.5% over the past year while the S&P 500 Index is up 9% for the same period.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
From:: Stock Market News