UPDATE: Citigroup Reiterates Neutral Rating, Lowers PT on Macy's

In a report published Wednesday, Citigroup reiterated its Neutral rating on Macy's

, but slightly lowered its price target from $40.00 to $39.00. Citigroup noted, “Bloomingdale's [a division of Macy's] is running its Mystery Savings event online only, ending December 12 th, with savings of 10%, 20%, 30%, or 40%. Bloomingdale's also ran this promotion in October 2012, and in December 2010, but we believe the promotion is new YOY and potentially unplanned as the company looks to clear higher than anticipated levels of inventory. We are lowering our 4Q12 gross margin estimate for M to 40.8%, reflecting (-20) bps of contraction, down from (-10) bps of contraction to 40.9% previously.” Macy's closed on Tuesday at $38.86.