UPDATE: J.P. Morgan Reiterates Overweight Rating, Raises PT on Macy's Following Management Meetings

In a report published Tuesday, J.P. Morgan analyst Matthew R. Boss reiterated an Overweight rating on Macy's

, and raised the price target from $46.00 to $52.00. In the report, Boss noted, “In our view, the Macy's model has evolved with 2008/2009 structural changes (centralization/My Macy's localization) the inflection point in the story and a mind-set shift to ‘Omni-channel' (Gannett/Sasche management reorganization) setting the stage for 3-5 years of mid-teens compounding EPS growth ($5-6 EPS likely by 2015E). While cognizant that the path may not be linear (i.e. unfavorable weather in 1Q), our recent West Coast meetings with Macy's CEO Terry Lundgren and CFO Karen Hoguet (4/23: Notes From the Road – Mgmt Meetings Highlight LT Model Opportunity) reinforced the drivers in place: by (1) 3-5% SSS (stores/online collaboration), (2) flattish GPM w/ expense leverage equating to a 14%+ EBITDA margin, and (3) increased use of cash w/ share repurchases (2.4x-2.7x debt/EBITDAR) and dividends the primary vehicles.” Macy's closed on Monday at $46.00.