Shares of Macy's (NYSE:M) were rising on Thursday, despite a price-target cut from a key analyst, as investors bid up shares of retailers on optimism that U.S. states would continue to lift restrictions on movement intended to slow the spread of COVID-19.
As of 1:15 p.m. EDT, Macy's shares were up about 4.3% from Wednesday's closing price.
In a note on Thursday morning, Deutsche Bank analyst Paul Trussell cut his estimates and price targets for several department stores, including Macy's. He said that he remains cautious about the overall sector, as companies continue to cut costs and say that they will permanently close stores as they emerge from coronavirus-related shutdowns.
Trussell cut his price target for Macy's shares to $7, from $20, while maintaining a hold rating on the stock.
That was noteworthy, but it didn't seem to be bothering department store investors much on Thursday. While Macy's is among the companies that plan to permanently close some stores, at least some of those closings would have been necessary even if the pandemic hadn't happened.
Meanwhile, investors had a real reason for cautious optimism: Macy's began reopening its stores earlier this week, and said that it plans to have all of its Macy's and Bloomingdale's stores reopened by mid-June.
Investors waiting for updates from Macy's senior team will have to wait a bit longer. While the company will hold its annual meeting on May 15, it hasn't yet announced a date for its next quarterly earnings release, which in past years has happened in late May.