Market News: Macy’s, Eastman Kodak, and Proctor&Gamble (NYSE:M),(NYSE:EK),(NYSE:PG)

Department store operator Macy's Inc. raised its sales and profit outlook this year in a sign that its moves to tailor merchandise to local demand through My Macy's initiatives are working. In its first meeting in three years with analysts and investors hosted in New York, the company raised its 2010 profit outlook to $1.75 to $1.80 a share from $1.55 to $1.60 while same-store sales are expected to rise by 3% to 3.5% versus 1% to 2% previously. Chief Financial Officer Karen Hoguet also said the company plans to return to its peak profit margin rate, measured by earnings before interest, tax, depreciation and amortization, of 14% to 15%. Last year, the rate was at about 11%.  – More at MarketWatch

There was a big rally in Eastman Kodak (EK) shares; on the day Monday EK rose 90 cents, or 11.3%, to $8.90, on little obvious news.  Well, it turns out that Rafferty Capital Markets analyst Mark Kaufman picked up coverage of the stock yesterday with a Buy rating and $15 stock target.  Kaufman writes that the $15 target is based on an EV/EBITDA multiple of 5.3x his 2010 EBITDA estimate of $805 million. He says the current lower price “is more indicative of [a] business facing liquidity issues,” and notes that the company has retired over $800 million of debt over the past two years, and entered 2010 with $2.024 billion in cash and $1.4 billion in debt, for a net cash position of $623 million.  – More at Barrons

Procter & Gamble inked an advertising agreement with the new Oprah Winfrey Network, or OWN, worth more than $100 million, according to reports that cited people familiar with the matter. The deal with OWN will last three years once the network launches in January. P&G’s deal will include both ad time and the integration of its products into shows featured on the network.  P&G, the maker of products including Pantene shampoo and Tide laundry detergent, is experiencing a rebound in advertising spending, which was up 6.3% in January from the previous year. The company said it spends around $8 billion on worldwide advertising annually.  OWN is a joint venture between Oprah Winfrey's Harpo and Discovery Communications. In 80 million homes, the new network will replace the Discovery Health Channel.  – FoxBusinessNews