UPDATE: Citigroup Reiterates Buy, $48 on Macy's

Citigroup reiterates its Buy rating and $48 price target on Macy's M following the upgrade in the company's credit rating to BBB from S&P. Citigroup notes, "S&P upgraded its corporate credit rating for Macy's one notch to 'BBB' from 'BBB-,' due to the company's strong performance over the past year. Importantly, this upgrade will give Macy's improved access to the commercial paper markets. We expect the company to utilize this attractive source of funding to help fund its working capital needs, especially for Holiday inventory purchases. We believe this will free up some cash on Macy's balance sheet, and we expect the company to return more cash to shareholders through increased share repurchases, while maintaining its two key credit metrics." M closed at $38.56 a share yesterday.