UPDATE: Citigroup Upgrades Macy's to Buy on 2013 Growth Catalysts
Citigroup upgraded Macy's (NYSE: M) from Neutral to Buy and raised the price target from $38.00 to $46.00.
Citigroup said, "We are upgrading Macy's to Buy from Neutral as we believe the company is positioned for accelerating comp growth in 2013. Macy's should be the beneficiary of a stronger housing market, and we see four catalysts for 2013, including: 1) the potential for double-digit sales growth in home (16% of sales mix in 2012E vs. 15% in 2011), 2) another year of 40% online sales growth, 3) Macy's Millennial focus gains traction and brings in a new customer, and 4) RFID benefits gross margins in 2H13. Macy's is our favorite department store stock for 2013."
Macy's closed at $38.72 on Monday.
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