Macy’s stock outlook: Evercore ISI sees a 90% upside

Macy’s Inc (NYSE: M) has made its shareholders nervous with a 30% decline in the stock price over the past three months, but the worst is in the rearview mirror, says Omar Saad, who sees a 90% upside in “M”.

Evercore ISI analyst defends his bold call on CNBC

The Evercore ISI analyst rates Macy’s at “outperform” with a price target of $50. At six times earnings, Saad sees the stock as extremely inexpensive. On CNBC’s “The Exchange”, he said:

Macy’s is scheduled to report its fourth-quarter results on February 22^nd. Also on Wednesday, the U.S. Census Bureau said retail sales jumped 3.8% in January – beating expectations for a 2.1% increase by a big margin.

Macy’s is yet to fully recover from COVID

Macy’s hasn’t recovered completely in terms of traffic, and Saad expects a continued easing of COVID restrictions to serve as a tailwind for the Ohio-headquartered department store chain. He added:

Earlier this week, Jana Partners disclosed to have slashed its stake in Macy’s by 84%. The activist investor had pushed the retailer late last year to spin off its eCommerce segment. M is up 3.0% today.