Summary

• Macy’s receives a buy rating, supported by Berkshire Hathaway’s new 1% stake and an improved earnings outlook.
• M delivered solid Q4 results, with comp store sales up 1.8% and a strong performance at Bloomingdale’s, despite a 2% revenue decline.
• Guidance for FY 2026 remains prudent amid macro uncertainty, but free cash flow yield exceeds 15% and valuation remains attractive at 12x P/E.
• Technical signals are mixed, with shares about 20% undervalued and key support near $18 ahead of the Q1 earnings catalyst.

Macy's (M) share lifted 5% in the after-hours session on Friday, May 15. News broke that Berkshire Hathaway (BRK.A) (BRK.B) established a new position in the beleaguered retailer. Greg

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