Deutsche Bank Confident on EPS for Macy's

Deutsche Bank has published a research report on Macy's

defending the company despite having an unfavorable view into today's 1Q print. In the report, Deutsche Bank writes, "Even if Macy's had a good quality quarter and raised its FY12 EPS view to the Street, the stock may have still sold off as expectations given its ~29% move up YTD were extremely high. Layer in an arguably crowded long with (1) a low quality print and (2) no guidance raise - we're not surprised to see the stock sell off a bit here at the open. That said, sub $39, we see a good risk/reward with the stock trading at just 9.3x and considerable EPS upside in our model." Deutsche Bank maintains its Buy rating and $45 price target on Macy's, which is currently trading down $1.82 from yesterday's $39.51 closing price.