Stifel Upgrades Nordstrom (JWN) to Buy; Gets Bullish on 'Best-in-Class' Retailer

Stifel upgrades Nordstrom (NYSE: JWN) from Hold to Buy with a $40 price target.

Analyst Richard Jaffe commented, Nordstrom’s consistently favorable results over the last few years demonstrate the efficacy of the JWN model and the consistency with which they apply their customer-centric focus on their various venues for growth. Management has stayed true to their commitment to serve the customer in the best way possible, with outstanding service and deep and broad, on-trend merchandise assortments. Management has increased their stores’ appeal and grown their audience by offering more product diversity and an increased number of venues and markets to better attract and serve a broad range of customers – Full-line stores and Nordstrom.com, flash-sale online retailer HauteLook, high service Trunk Club, off-price shopping at Rack and online at Rack.com. While costly and contributing to the decline in ROIC in recent years (2013-2015E), management has had the long-sightedness to invest in the future, built on the foundation of the Nordstrom brand and its two pillars of strength service and selection.

For an analyst ratings summary and ratings history on Nordstrom click here. For more ratings news on Nordstrom click here.

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