Citigroup is a bear on retail stocks. In a note today the firm says it has "sells" on the large discretionary retailers.
Citigroup said in a note that Harvey Norman has the greatest earnings upside, while Myer offers the best relative valuation.
At 1231 AEDT Harvey Norman shares were up 7 cents to $2.855. Myer’s stock had slipped 3 cents to $2.93.
Citigroup suggests the retail share rally is overdone.
“It is plausible there is a wealth induced retail sales spike over the next six months.”
“As interest rate stimulus fades, sales will subside.”