Macy's Shares Higher as Morgan Stanley Adds to 'Best Ideas' List

Shares of Macy's, Inc.

have received a little bump this morning as Morgan Stanley analyst, Kimberly Greenberger reiterated an Overweight rating, raised the price target from $60 to $66, and added the stock to the firm's "Best Ideas" list. In the note, Greenberger called Macy's a "secular winner in omni-channel retailing" and said the company's upcoming second quarter earnings report will likely be a "positive catalyst". Moreover, Greenberger noted that Macy's is the cheapest stock in the firm's Softlines/Department Store coverage, except for Michael Kors

. Looking at the quarter, Greenberger is estimating same-store sales growth of 5.5 percent and an EPS of $0.88 both of which are above consensus. Additionally, She says two percent comps, stable gross margin, 10-20bps of SG&A leverage, and $1.5 billion in buyback each year will yield a 12 percent three-year EPS CAGR. Macy's is scheduled to report its second quarter earnings on Wednesday, August 8th before the open.