NEW YORK (TheStreet) -- Shares of Macy's (M) - Get Macy's Inc Report were climbing in pre-market trading on Wednesday after Citigroup upped its rating on the stock to "buy" from "neutral."

The upgrade reflects Macy's attractive free cash flow and dividend yield, which create a compelling risk/reward balance at current levels, the firm said in a note cited by TheFly.

The retailer is making the right decisions in a challenging environment, Citigroup noted. 

Macy's is "one of the stronger horses in the race," and upcoming quarterly results might be potential catalysts for the stock, the firm contended, according to TheFly. 

Citigroup maintained its $44 price target on shares of the Cincinnati-based department store operator. 

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Separately, TheStreet Ratings team rates the stock as a "hold" with a ratings score of C.

Macy's strengths such as its reasonable valuation levels, good cash flow from operations and expanding profit margins are countered by weaknesses including deteriorating net income, generally higher debt management risk and disappointing return on equity.

You can view the full analysis from the report here: M

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.

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