J.P. Morgan downgrades Macy's to 'neutral' following downbeat annual forecasts

J.P. Morgan downgrades department-store chain Macy's M.N to "neutral" from "overweight", cuts PT by $5 to $14

Macy's forecast annual sales, profit below estimates on Thursday

J.P. Morgan notes that return to extension of same-store-sales growth timeline and additional store closures raising long-term risk

Telsey Advisory Group says co's updated strategy to reinvest in high-potential locations is reasonable given the divergence in the store portfolio performance; cuts PT by $2 to $15

However, brokerage notes that FY25 expectations reflect continued macro challenges; says paring down the Macy's store base to a more manageable and profitable size is prudent given structural traffic shifts

Four of 13 brokerages rate the stock "buy" or higher, eight "hold" and one "sell"; median PT $16

M fell 16% in 2024, and 22% YTD as of last close