Macy's FY14 SSS guidance likely at risk, says Deutsche Bank Deutsche Bank believes Macy's FY14 same-store-sales guidance of up 2.5%-3.0% is likely to be revised lower and its earnings outlook of $4.40-$4.50 could be cut by 5c-10c given the shortfall in Q1 and the promotional environment. Deutsche says its channel checks suggest strong Q2 top-line trends for Macy's, however, driven by incremental promotional activity and a pickup in seasonal sales. The firm reiterates a Buy rating on the stock, saying it still wants to own the stock into year-end.
J.C. Penney downgraded to Sell from Neutral at UBS UBS downgraded its rating on J.C. Penney (JCP) shares to Sell saying the company's 2017 EBITDA target of $1.2B is overly optimistic as it assumes years of market share gains against strong competitors like Macy's (M) and Kohl's (KSS). UBS halved its price target for Penney shares to $5 from $10. The retailer's stock closed Friday down 52c to $7.12.