• Macy's (NYSE:M) opens with a 3.1% downward swing after Morgan Stanley slaps an Underweight rating on the department store operator.
• "Macy's continues to undergo core operating challenges, similar to peers in the department store space. Despite closing stores proactively, store-only comps remain negative and we forecast them to remain so in the future," reads the MS note penned by analyst Kimberly Greenberger.
• "Expense cuts, real estate monetization, and secondary growth initiatives are encouraging, but we think the market needs to see core retail EBIT stabilization and a return to strong cash flow generation in order to become more constructive on the stock," she adds.
• The investment firm sees more ROIC deterioration for Macy's this year and estimates EPS of $3.55 for the full year. Add it all up, and MS comes up with a price target of $25 on Macy's.