UPDATE: Citigroup Downgrades Macy's to Neutral on Slower Expected Growth

Citigroup reduces its rating on Macy's

from Buy to Neutral and reduces its price target from $49 to $37. Citigroup comments, "We are downgrading Macy's to Neutral from Buy and are lowering our target price to $37, down from $49 previously. We believe that Macy's fits well into our "Empty Pockets" theme, which envisions slower growth in consumer spending for the back half of the year, especially at the high-end. We also believe that consensus EPS estimates for 2012 are too high, which could limit upside for the stock in the near term." M closed at $34.20 on Tuesday.