UPDATE: Stifel Nicolaus Initiates Macy's at Buy on Favorable Outlook

In a report published Thursday, Stifel Nicolaus analyst Richard Jaffe initiated coverage on Macy's (NYSE: M) with a Buy rating and $55.00 price target.

In the report, Stifel Nicolaus noted, “We are initiating coverage of Macy's Inc. (M) with a Buy rating and target price of $55. Our outlook is favorable, given the company's market dominance (approximately 10% of total U.S. apparel sales), extensive assortment of both exclusive and national brands distributed regionally (My Macy's), and the initial success of the omnichannel shopping initiative. We anticipate continued stock price appreciation as sales growth leverages operating costs, which we expect will lift earnings while generating cash flow to fuel share repurchases, resulting in double-digit EPS and ROIC growth.”

Macy's closed on Wednesday at $46.58.