The firm downgraded both M and JCP from "Buy" to "Neutral," citing the stocks' unfavorable risk/reward, given their current valuations.
Goldman said Macy's should be able to meet its sales and EPS estimates, and raise its price target on the stock slightly, from $24 to $25. Meanwhile, the analyst said it expects near-term choppiness for JCP and boosted its target from $25 to $26.
Macy's shares fell 40 cents, or -1.7%, while J.C. Penney shares fell 49 cents, or -1.8%, in premarket trading Monday.
The Bottom Line
Shares of Macy's ( M ) have a .86% dividend yield, based on Friday's closing stock price of $23.15.
Shares of J.C. Penney ( JCP ) have a 2.92% dividend yield, based on Friday's closing stock price of $27.44.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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