Macy’s Inc. shares rose 2.1% in Tuesday premarket trading after the department store retailer was upgraded to positive from neutral at Susquehanna Financial Group. Analysts led by Bill Dreher said the company’s initiatives have created the potential for same-store sales growth that outpaces its guidance. Susquehanna raised its price target to $43 from $25. Macy’s raised its outlook in its most recent earnings report, and now expects fiscal 2018 EPS of $3.75 to $3.95, excluding the anticipated settlement of charges tied to benefit plans and other charges. This is 20 cents higher than previous guidance and ahead of the $3.61 FactSet consensus. Same-store sales on an owned-plus-licensed basis are expected to be up 1% to 2%. The FactSet consensus is for 1.2% growth. “[F]or Macy’s, fashion is selling very well right now, and it’s been years since fashion has sold well,” Susquehanna said. Tourism is also expected to turn into a tailwind. Macy’s was seemingly unaffected by the weather in the previous quarter, unlike other retailers, and the company seems poised to overcome what Susquehanna calls “the worst spring shopping weather in 25 years.” Macy’s innovation is outshining the competition, analysts wrote. “The pent-up demand from the late arrival of weather should help Macy’s beat again in FQ2:18, as we expect Macy’s to out-comp the competition.” Macy’s shares are up nearly 48% for the past year while the S&P 500 index is up 14.2% for the period.