IB Net Payout Yields Model

Macy's Is Easily Worth $50


  • Macy's got a surprise analyst price target of $50, 100% above the previous stock price.
  • The department store retailer has long had valuable real estate with the latest estimate at $7 billion, an amount nearly matching the current stock valuation.
  • The stock is easily worth $50 based on just 10x EPS targets.
  • This idea was discussed in more depth with members of my private investing community, Out Fox The Street. Learn More »
In a shocking move, Evercore ISI raised the price target on Macy's (M) to $50. Similar to recent moves in Kohl's (KSS), the department store retailer is a major play on improving retail sales and a massive undervalued real estate play. My investment thesis remains very Bullish on Macy's as the company quits donating market share in the retail sector and can now focus on monetizing valuable real estate.

Read the full article on Seeking Alpha. 

Disclosure: Long M. Please review the disclaimer page for more details. 

Update - Feb. 22

Big quarter and big guidance... a $4.50 EPS in 2022 would be huge!

-Q4 Non-GAAP EPS of $2.45 beats by $0.46.
-Revenue of $8.67B (+27.9% Y/Y) beats by $220M.
-Comparable sales up 28.3% on an owned basis and up 27.8% on an owned-plus-licensed basis versus Q4 2020.
-For FY2022, the company expects net sales of $24.46B to $24.7B vs. consensus of $24.37B ; Comparable owned plus licensed sales three-year CAGR: Approximately 1.1% to 1.4%; Adjusted diluted earnings per share of $4.13 to $4.52 vs. consensus of $4.02.


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