Citigroup added Macys ($15.78) to its retail sector top picks.
1. Raising of 4Q09 EPS guidance depending on how sales come in.
2. 2010 outlook on 2/23/10
1.(NYSE:M) currently trades at a 9.2 forward P/E, average multiple for department stores is 13.3.
2. 10-year historical range is 6.1-22.8, currently trading towards the lower end.
3. Department store average EBITDA is 6.2, (M) trading at 4.6.
DISCLOSURE – No position
Disclosure: No Position