TD Cowen Raises Macy’s Target to $25, Shares Jump Nearly 4%
M•TD Cowen raised Macy’s price target to $25 from $20 and kept its buy rating, spurring a nearly 4% share jump. Berkshire Hathaway bought just over 3 million shares, a $55 million investment representing about 1% of the retailer’s stock.
1. Analyst Upgrade Spurs Shares
TD Cowen boosted its price target on Macy’s to $25 from $20 while maintaining a buy rating, triggering a nearly 4% rally in the stock. The upgrade reflects improved traffic and profitability trends in Macy’s core and Bloomingdale’s divisions.
2. Berkshire Hathaway Takes Stake
Berkshire Hathaway acquired just over 3 million Macy’s shares in a $55 million purchase, marking about a 1% ownership position. This marks the first department store investment by the conglomerate in roughly six decades, signaling renewed confidence in brick-and-mortar retail.
3. Strong Q1 Performance
Macy’s delivered a stellar first quarter with a 3% comparable sales gain company-wide and a 10.2% increase at Bloomingdale’s, driving raised sales and profit outlook for fiscal 2026. CEO Tony Spring highlighted steady store traffic despite consumer sentiment challenges and optimism for back-to-school demand.
4. Bold New Chapter Strategy
Under its three-year Bold New Chapter plan, Macy’s is closing underperforming locations and expanding luxury formats, including smaller Bloomies shops and Bluemercury beauty stores. The strategy aims to accelerate growth in higher-margin segments and optimize the store portfolio.
