Credit Suisse Sees Macy's, Inc. as Focused on Accelerated Growth

In a report published Wednesday, Credit Suisse analyst Michael Exstein reiterated an Outperform rating and $68.00 price target on

. In the report, Credit Suisse noted, "Macy's delivered a modest beat on earnings, but having preannounced twice, in many ways the actual numbers were anti-climactic. The only results that clearly stood out were the decline in inventory levels at end of quarter, and good leverage for payables over inventory. Inventories were down - 0.7% year-over-year (up +0.9% on a comparable basis), while sales rose +1.8%; payables leveraged 87.1% vs. 84.8% in 4Q13. While delays related to the West Coast, port strikes are expected to negatively impact 1Q sales, margins, and inventory, the company's current inventory position gives a sense that M is going into 1Q in good shape. Additionally, SG&A was nicely controlled, due to lower medical and retirement expenses and stronger credit income." Macy's, Inc. closed on Tuesday at $62.10.