Stifel Affirms Nordstrom (JWN) at 'Buy'; Management Positive for H2, Long-Term
- Top 10 News for 12/2: Crude Rips on OPEC Cut; Starbucks' Schultz Steps Down; Nonfarm Payrolls Flat in Nov.
- Unemployment Rate Drops to 4.6%
- Bond yields slip on U.S. jobs data, euro steady before Italy vote
- Alibaba (BABA) Founder Jack Ma Discuss Plans to Retire; 'I Don't Want to Die at the Office'
- Starbucks Coffee (SBUX) CEO Howard Schultz to Step Down, Appointed Executive Chairman; Kevin Johnson New CEO
Get daily under-the-radar research with StreetInsider.com's Stealth Growth Insider Get your 2-Wk Free Trial here.
Stifel affirms Nordstrom (NYSE: JWM) with a Buy rating and $58 price target following recent meetings with CFO Mike Koppel and IR Director Trina Schurman.
Analyst Richard Jaffe noted management's positive long-term outlook based on store expansion, business portfolio, and desire to be a tech leader.
We see JWN as a best-in-class retailer, with its great customer experience and inspiring merchandise assortments. We believe in owning the stock for the long term and before management begins to realize the full benefits of their recent intensive investment cycle. We anticipate that with the slowing of investments and the significant reduction of capex in 2016 and beyond, we will see a multi-year improvement in ROIC, coincident with an acceleration of EPS growth.
Additionally, the off-price division continues to provide strong and highly profitable growth. We have seen good results from their young growth divisions (Hautelook, and stores in Canada) and are encouraged by the roll-out of a card-free loyalty program (the benefits of a similar program at KSS were material, helping lift sales and build customer loyalty as it was implemented). As improvement in the core business becomes evident in 2H16 and into 2017, we anticipate shares trading up to approximately 19x our 2017 EPS estimate of $3.10, suggesting a share price of $58 (at a premium to the two year average of the out year consensus multiple of 17x).
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Oppenheimer Cuts Price Target on Workday (WDAY) Following 3Q; Reiterates Outperform
- Jefferies Cuts Price Target on Dollar General (DG) Following 3Q
- Jefferies Raises Price Target on Ulta Salon (ULTA) to $270; Reiterates Hold
Create E-mail Alert Related CategoriesAnalyst Comments
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!