03:53 PM EDT, 08/07/2024 (MT Newswires) -- Macy's (M) is likely to meet expectations for fiscal Q2 results amid mixed indications for strong sales and weak margins, UBS Securities said Wednesday in a report.

"Our data suggests sentiment is more bullish than normal," and conversations with investors suggest a bearish outlook, UBS said.

Sales and visit trends show slight improvements, while web traffic eased and discounting increased, the report said.

UBS said Macy's "faces structural challenges which will cause it to lose share to off-price retailers, brands and Amazon," supporting the sell rating by the securities firm.

UBS has a $10 price target on Macy's stock. The retailer's Q2 results are expected late this month.

The company's shares fell 2.8% in recent trading Wednesday.

Price: 15.07, Change: -0.44, Percent Change: -2.80