The ‘Retailpocalypse’ Is Over And It’s Time To Go Long Macy’s

It’s time for investors to go long shares of Macy’s because classic brands and retailers have finally innovated their way into the digital era, according to Evercore ISI. Analyst Omar Saad, who double-upgraded his rating on shares of the iconic department store to long from short, says Wall Street’s fears about a “retailpocalypse” stemming from Amazon’s ascent are overblown. “In a nutshell, we are convinced that old-world brands and retailers are figuring out how to manage inventory and market to consumers in the digital era, a critical turning point for the sector,” Saad said in a note Sunday. “Macy’s and others will have equal opportunity in the coming years to compete for the attention of discretionary consumers given a core set of competitive advantages that are not going away.” “Multi-year share price underperformance and still modest valuations despite a very healthy consumer macro environment tell us that the market is still married to the sensational ‘retailpocalypse’ narrative which assumes that Amazon and other digital disruptors will continue unabated,” he added. That’s “a viewpoint with which we no longer agree.” Read more at CNBC.