<div id="subtitle">Department store stocks slip as Goldman Sachs downgrades Macy's, predicting 'muted' recovery</div><div><p>Shares of department stores dipped Friday after an analyst downgraded Macy's Inc., saying a "muted" sales recovery during the year will only offer a limited boost to department store profits.</p><p>"As we enter 2010, we see economic growth lagging typical recovery levels," Goldman Sachs analyst Adrianne Shapira wrote in a research note.</p><p>She lowered her rating on Macy's to "Neutral" from "Buy" and her share price target to $18 from $21. Its shares fell 57 cents, or 3.3 percent, to close at $16.92.</p><p>Shapira boosted her rating on J.C. Penney Co. to "Neutral" from "Sell," saying that the company's stock is fairly valued, even though its revenue and profit is weaker than many of its competitors.</p><p>J.C. Penney shares lost 21 cents to end trading at $26.60.</p><p>Shapira's ratings changes came a day after many retailers reported sales results for December. Macy's and J.C. Penney both reported slightly better-than-expected sales at stores open at least a year — considered an important retail performance indicator because it measures growth from existing stores rather than newly opened ones.</p><p>Shapira said the sector's results showed improvement from the previous month, but still indicated that no "roaring" sales recovery is imminent.</p><p>Among other department store stocks, Dillard's Inc. shares sank 39 cents, or 2.1 percent, to $18.11. Bon-Ton Stores Inc. finished unchanged at $11.26.</p><img src="http://admatch-syndication.mochila.com/images/ad.gif?aid=66573070&bid=informcom" /></div><div id="copyright"><div>

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