Citi Reiterates Buy On Macy's, Sees FY14 Comps As 'Achievable In Tough Retail Environment'

Shares of Macy's Inc. (NYSE: M) are higher Thursday after Citi issued a note "Hip strategies to drive bricks & clicks.”The firm's Oliver Chen said he continues to see Macy's comps outlook for FY14 as "achievable in a tough retail environment." He cited "strong conversion and omnichannel traffic, tidy inventories, shrewdly planned promotions, and the relative health of the Macy's consumer..."Chen believes positives for the second quarter will include the ongoing freshness of Macy's improved ending inventory levels and the company's "Customer Favorites" program.The Citi analyst also highlighted Macy's as the "best in class promo planning, inventory management, & markdown execution."Citi reiterated a Buy rating and $63 price target on shares of Macy's.With shares of Macy's closing up nearly one percent to $59.16, Chen's price target represents potential upside of about 6.5 percent.