Citi Reiterates buy Rating On SKS

Citi is reiterating its Buy rating and $16 PT on shares of Saks Incorporated SKS. “Today, announced that it has amended its $500M revolving credit facility,” Citi writes. “The amendment included an extension through March 2016, a lower interest rate, a higher threshold before the financial covenants kick in, and lower unused line fees. “The company also slightly lowered its 2011 interest expense guidance as a result. We believe that the extension of the credit agreement is evidence that SKS' business is on a positive trajectory. We expect the company to generate strong FCF of $172M in 2011, enabling SKS to repay its $142M October 2011 debt maturity.” Saks Incorporated closed Tuesday at $11.17.