Macy's sized up after earnings dud

|About: Macy's, Inc. (M)|By:, SA News Editor

Macy's (NYSE:M) is flat in premarket trading after yesterday's bruising 13% post-earnings drop. On Wall Street, most of the ratings action is on the negative side.

UBS lowers its price target on the department store stock to $16 from $21, while JPMorgan drops its stance to an Underweight rating and sets a lowered PT of $16.

"Looking ahead, 2019 top- and bottom-line assumptions remain at risk as guidance is heavily weighted to a 4Q improvement despite more difficult comparisons on a two-year and three-year stacked basis. Larger picture, discretionary dollars continue to shift toward convenience (Amazon) and Value (off-price), with no visibility toward a less pressured U.S. wholesale environment," writes JP analyst Matthew Boss.

On Seeking Alpha, D.M. Martins Research recommends investors wait for stock demand to pick up on Macy's before trying to catch the falling knife.

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