Macy’s Upgraded to “Buy” at Soleil Securities (M)

in Gold Gold Investing by admin — March 8, 2010 7:12 am | no comments

Famous retailer Macy’s, Inc. ( M ) saw its rating, price target, and earnings estimates all boosted on Monday by analysts at Soleil Securities. The analyst raised its rating on M to “Buy” from “Hold,” and lifted its price target on the stock to $28 from $19. Macy’s shares had closed at $20.45 on Friday. Soleil noted that “Our estimates are being increased by $0.15 for this year and $0.20 for next to $1.75 and $2.05. Industry trends are improving, and Macy’s monthly sales results have exceeded plan for 3 consecutive months. We see estimates and the share price going higher…Company has topped comp expectations for 3 straight months, including 3.7% increase in February. Results for the month were negatively impacted by 1.3% from snowstorms…Expenses are expected to grow only about 1% this year following a 2-year $400 million cost-cutting program, producing significant leverage opportunity if sales beat management’s 1%-2% growth plan. Our estimate is 3%-4%.” Macy’s shares rose 40 cents, or +2%, in premarket trading Monday. The Bottom Line We had removed shares of Macy’s from our “recommended” list back in September of 2008, when the stock was trading at $20.17. The company has a dividend yield of .98%, based on Friday’s closing stock price of 20.45. The stock has technical support in the $16 price area. If the shares can firm up, we see overhead resistance around the $22-$25 price levels. We would remain on the sidelines for now. Macy’s, Inc. ( M ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars. Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .