Morgan Stanley Expects 4Q Outperformance for Macy's

In a report published Thursday, Morgan Stanley analyst Kimberly C. Greenberger reiterated an Overweight rating and $66.00 price target on Macy's M. In the report, Morgan Stanley noted, “Helped by low expectations, M shrugged off a 3Q sales miss and FY EPS guide down. Cost cuts drove a 10c EPS beat. Results reinforce 1. How tough the retail environment is; and 2. M's commitment to deliver earnings growth. Lowered guidance appears beatable and we expect M to out execute peers in 4Q.” Macy's closed on Wednesday at $61.57.