UBS reiterates Macy’s stock Sell rating despite slightly better Q2 sales

Published 12/08/2025, 14:58
UBS reiterates Macy’s stock Sell rating despite slightly better Q2 sales

Investing.com - UBS maintained its Sell rating and $6.00 price target on Macy’s (NYSE:M), representing the lowest among analyst targets ranging from $6 to $23, despite noting slightly improved second-quarter sales trends. The stock currently trades at $12.50, with a notably low P/E ratio of 6x.

The investment bank raised its Q2 earnings per share forecast by 4 cents to $0.19, aligning with consensus estimates, after channel checks suggested better-than-expected sales performance during the period.

Despite the modest Q2 improvement, UBS expects Macy’s to maintain its fiscal year 2025 guidance due to tariff and macroeconomic uncertainties that could negatively impact the second half of the year.

The firm believes the market already anticipates this outlook, suggesting the Q2 report is unlikely to significantly revise Street estimates or move the stock’s price-to-earnings ratio substantially.

Options markets are pricing in a 5.4% stock move following the earnings report, below the 7.5% historical average, with UBS agreeing that the quarterly results will likely be a "low volatility event."

In other recent news, Macy’s, Inc. announced an increase in its cash tender offer for outstanding notes and debentures from $175 million to $250 million. Additionally, Macy’s has priced an offering of $500 million in 7.375% senior notes due in 2033, with the offering expected to close in July 2025. Meanwhile, UBS has reiterated its Sell rating on Macy’s stock, citing potential continued market share loss and forecasting a negative 13% compound annual growth rate in earnings per share from fiscal year 2024 through 2029.

In other developments, X1 Capital Inc. has formed a new subsidiary, CBT SF LLC, and secured a $15 million credit line with Woodforest Bank. This subsidiary will focus on acquiring participating interests in government-guaranteed loans backed by the SBA (LON:SBA) and USDA. HDFC Bank Limited has revised its Integrated Annual Report for fiscal year 2024-25, updating leadership profiles to comply with regulatory requirements. The updated report is available on the bank’s website.

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