Citi has upgraded two retailers from Sell to Neutral this morning due to flat rental growth. Oroton Group (ASX: ORL) and Premier Investments (ASX: PMV) have been upgraded due to improved rent-to-sale ratios. For Premier Investments, Citi lifted its FY14 earnings forecast by 3% whilst saying its struggling casual wear division continues to be a drag on earnings despite Smiggle's success. For Oroton, competition from other retailers remains a concern but the broker lifted its FY14 earnings by 4%. It also mentioned that upside could come by using excess cash for an acquisition.
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