TL;DR
Department store stocks may be poised for a rally after reporting Q4 results, with potential acquisition driving shares up 50%. Macy's investors will be watching for a potential sale, which could result in shares rising 50 percent after an acquisition.
According to CNBC , department store stocks are already down 13 percent since announcing holiday sales results in January. However, Morgan Stanley analyst Kimberly Greenberger says such chains might soon be poised for a rally after reporting Q4 results next week - even if the rally is short lived.
"We've seen the 'easy compare' script before," Greenberger said, in regards to the third and fourth quarters of 2016. "[We] would use any strength into first quarter earnings per share prints in May to trim positions."
Macy’s investors will be keeping their eyes peeled for a potential sale, which could result in shares rising 50 percent after an acquisition. "A buyer would likely need to be excited or prepared to execute better than current management with respect to a turnaround," said Oliver Chen, an analyst as Cowen and Company.
In this story
This story was originally published in 1851 Franchise on February 13, 2017. Burnaze summarizes and links to the original reporting.
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