UPDATE: Citigroup Reiterates Neutral Rating, Raises PT on Saks

In a report published Wednesday, Citigroup reiterated its Neutral rating on Saks SKS, and slightly raised its price target from $11.00 to $12.00. Citigroup noted, “SKS reported 2Q12 EPS that were well ahead of our estimate and consensus, and management reiterated its outlook for 2H12. SKS successfully worked through elevated inventory levels in 2Q12 and believes it is entering 3Q12 in a strong inventory position. The company will also begin to cycle incremental investment spending that began last Fall, which should improve margin performance. We are raising our 2012 EPS estimate to $0.46 and our target price to $12. However, we maintain our Neutral rating given the challenging macro environment and limited upside to valuation.” Saks closed on Tuesday at $11.52.