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Deutsche Bank Upgrades Nordstrom (JWN) to Buy; Valuation Looks Attractive

November 2, 2009 7:01 AM EST
JWN Hot Sheet
Rating Summary:
    8 Buy, 7 Hold, 1 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 16 | Down: 7 | New: 23
Deutsche Bank upgrades Nordstrom (NYSE: JWN) to Buy. Price target $45.

Deutsche analyst says, "Over the last two months, Nordstrom beat FY09 comp guidance (-12% to -9%) and in Oct we expect them to accelerate to a +8%. The company’s strategy to sharpen price points, without sacrificing quality has appealed to their core customer. Sales are also benefiting from the stabilization in CA, gains from market share up-for-grabs & pent-up demand. Lean inventories & reduced costs coupled with the sales improvement will drive meaningful EPS growth...We are
> increasing our EPS est. for Q3:09 to $0.40 (+33.8% y/y), from $0.31 previously, Q4:09 EPS to $0.65 (+106% y/y), from $0.45 previously and FY09 goes to $1.84 (+2% y/y), from $1.55 previously. Our new FY10 EPS est. is $2.52 (+37.3% y/y), from $1.75 previously and FY11 EPS goes to $2.83 (12.2% y/y), from $2.02 previously."

To see more analyst ratings on JWN Click Here.


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