Macy's Downgraded, Price Target Cut At Cowen & Co.

Macy's Inc. was downgraded to market perform from outperform at Cowen & Co., which lowered its price target to $52 from $70. The firm said in a note that third-quarter same-store sales will be down 0.8% compared with the firm's prior flat estimate. The decline follows weak traffic in September and October and negative impact on fall and winter apparel caused by warm weather. Cowen believes Macy's diversification with brands like beauty retailer Bluemercury and its new off-price Backstage stores are long-term positives, but also "capital intensive" moves that limit earnings growth. Cowen also sees Amazon.com Inc. as a growing threat in the apparel, footwear and accessory markets. Macy's shares are down 32.2% over the past three months. The S&P is down 0.4% for the same period.