Goldman Sachs has adjusted its outlook for Macy’s, Inc. (M, Financial), shifting from a "Buy" to a "Neutral" rating. The investment bank has also revised the retailer's price target to $12, a reduction from the previous estimate of $17. This adjustment comes as the firm expresses concerns over increasing macroeconomic uncertainties and heightened cyclicality risks.
The historical context indicates that department stores often experience a downturn in sales during periods of economic instability. Goldman Sachs suggests that the present economic climate calls for a cautious approach. Despite recognizing Macy's ongoing growth strategies, the firm believes these efforts are being counterbalanced by factors such as decelerating GDP growth, tariff risks, and inflation pressures.
