Macy's downgraded to Sell from Neutral at Goldman Sachs

Goldman Sachs analyst Alexandra Walvis downgraded Macy's to Sell from Neutral with a price target of $12, down from $17. The shares closed Friday up 4c to $15.15. The analyst, while acknowledging the stock's year-to-date underperformance and "already weak sentiment" following the recent deterioration in fundamentals, sees "significant additional downside" to Macy's retail operations. This will offset upside from the company's store segmentation and cost savings initiatives, Walvis tells investors in a research note. The analyst thinks consensus estimates continue to underestimate negative operating leverage for the retailer.