J.P.Morgan cuts PTs of some department stores, retailers on 2023 outlook

Brilliant Earth

03/01/2023 14:56

** Brokerage J.P.Morgan updates PTs of some department store
chains and retailers based on holiday quarter and 2023 outlook
    ** Brokerage sees higher relative pressure on middle-income
consumers in FY 2023; further adds "we see freight as a tailwind
throughout 2023 and raw materials moving from a H1 headwind to
H2 tailwind"
    ** Elevated competition for Kohls Corp  KSS.N  requires
sharper pricing or promotional activity to maintain market
share, says J.P.Morgan, cuts KSS PT to $26 from $33, lowers
Nordstrom Inc's  JWN.N  PT to $15 from $16
    ** Brokerage notes Macy's Inc  M.N  was "well positioned
into Holiday"
    ** For American Eagle Outfitters  AEO.N , brokerage says "we
see potential markdown risk tied to supply vs demand imbalances
across categories as the consumer pivots to event-driven apparel
and away from loungewear"; cuts PT by $1 to $15
    ** Brokerage downgrades Brilliant Earth Group Inc  BRLT.O 
to "neutral" from "overweight"; cuts PT to $6 from $10
    ** "We see the overall fine jewelry industry challenged
ahead tied to the combination of macroeconomic pressures to
consumers' discretionary wallets & normalization of annual
engagements following 2021's peak," says brokerage on BRLT
    ** However, brokerage raises Boot Barn Holdings Inc's
 BOOT.N  PT to $94 from $92; says it sees incremental tailwinds
to BOOT's business post-pandemic
    ** Shares of M, KSS, JWN, AEO, BOOT and BRLT fell between
21.1% and 76.1% in 2022
 (Reporting by Granth Vanaik in Bengaluru)
 ((Granth.Vanaik@thomsonreuters.com; Twitter: https://twitter.com/Vanaik_Granth))