Citi Reiterates Buy on Macy's

Citi is out with its report today on Macy's M, reiterating Buy. In a note to clients, Citi writes, "Macy's entered into a new bank credit agreement today, securing a $1.5 billion credit facility through June 2015. Its previous $2.0 billion facility was due to expire in August 2012. The company's strong cash flow (FCF yield of approx. 14%) and improved balance sheet allowed it to secure more favorable terms and pricing. As a result, the company lowered its guidance for 2011 interest expense to $442 million, down from $450 million previously. We are raising our 2011 EPS estimate to $2.72, up from $2.70 previously, as we bring our interest expense estimate in-line with the company's revised guidance. We reiterate our Buy rating and $45 target price." Shares of M closed Monday at $27.65, up 1.39% from Friday's close.