Goldman Sachs Upgrades Federated Department Stores
Goldman Sachs upgraded Federated Department Stores (FD ) to outperform from in-line.
Analyst Adrianne Shapira says she believes investors have an opportunity to buy the best in class selling for the least in class. She says while she continues to recognize secular challenges of the department store sector, she believes Federated should outperform peer group on: 1) successful reinvention of chain by differentiating assortments, increasing store shopability, clarifying pricing, 2) upmarket positioning, 3) home reorganization, 4) potential consolidation opportunities, and 5) compelling valuation.
Shapira notes that the shares trade at the low end of the department store peer group average.