Nordstrom (JWN) a Buy as Rack Store Openings Pick Up - Nomura

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Nomura Securities reiterated a Buy rating on Nordstrom (NYSE: JWN) and raised their price target to $63.00 (from $60.00).

“JWN beat consensus after falling short in 1Q12, which should help allay concerns mgmt will find a way to ‘spent away the upside’”, said analyst Paul Lejuez.

“JWN management indicated it plans to open 24 Rack stores in F13 vs. 15 in F12, and that longer term it will operate ~230 Rack stores by the end of 2016. We now assume Rack openings from 2013-2016 of 24, 24, 30, 30. This compares to our previous assumptions of 15 in each of the four years. We believe this is a big positive for the stock as Rack has a higher EBIT margin and generates superior ROIC versus full-price Nordstrom stores,” added Lejuez.

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 $55.08 yesterday, with a 52 week range of $37.28-$57.75.

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