Morgan Stanley Reports on Macy's (M)

Morgan Stanley commented on Macy's M in a report released yesterday. In the report, Morgan Stanley was positive in its assessment of the company. Morgan Stanley writes, “We are reiterating our OW rating on M as we expect i) earnings upside and ii) multiple expansion to benefit the shares. We come out of 1Q with increased conviction in our view that key initiatives are still in the early stages of driving to-line results. As a result, we are raising our FY11 comp store sales outlook to +4.3% (from 3%). In addition, we think multiple expansions will occur as M continues to gain mkt share and transitions into a capital allocation story.” Presently, Morgan Stanley has an Overweight rating on Macy's and a price target of $31.00. Shares of the company closed the trading day at $28.13, down $0.23 from the opening bell.