Morgan Stanley initiated coverage of Macy's Inc. on Monday with an "Overweight" rating and a $30 price target. The bank cites potential for an improving retail sector in the second half of 2026. This outlook is supported by a favorable economic environment and a strong labor market. The new rating suggests considerable upside from its current trading level.
Following the announcement, shares of Macy's (M) rose more than 2%. Morgan Stanley's rating signals confidence in the department store retailer. Macy's is executing its "Bold New Chapter" strategy. This strategy focuses on luxury expansion and digital growth. The consensus rating from other analysts for Macy's is currently a "Hold."