Deutsche Bank Downgrades Nordstrom (JWN) to Hold
Get Alerts JWN Hot Sheet
Rating Summary:
6 Buy, 27 Hold, 6 Sell
Rating Trend: Up
Today's Overall Ratings:
Up: 13 | Down: 11 | New: 11
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Deutsche Bank downgraded Nordstrom (NYSE: JWN) from Buy to Hold with a price target of $56.00 (from $57.00).
Paul Trussell explained the rating change, saying, "We continue to believe that JWN's business model is unique to dept. stores via its: 1) variable cost structure; 2) limited promotional reliance; 3) more upscale targeted demographic; 4) greater product differentiation; and 5) multi-channel approach (full-line stores, the Rack, and e-commerce). Equally important, JWN remains ahead of the curve on both inventory and Internet technology investment, which has translated into outsized comp growth vs. its peers, and the company has a strong FCF profile despite increased investment spend. In our view, the business has stabilized from a margin standpoint and the Street has yet to realize the inherent EPS improvement ahead by lapping easy margin compares and turning the corner on Canada, HauteLook/Nordstromrack.com, and Trunk Club. However, the top-line is not yet showcasing the signs of reacceleration we think are necessary to maintain a high-teens multiple, and we have moved to the sidelines."
For an analyst ratings summary and ratings history on Nordstrom click here. For more ratings news on Nordstrom click here.
Shares of Nordstrom closed at $52.70 yesterday.
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