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Nordstrom (JWN) Price Target Lifted to $87 at Piper Jaffray

February 20, 2015 7:23 AM EST
Get Alerts JWN Hot Sheet
Price: $20.21 +1.46%

Rating Summary:
    6 Buy, 27 Hold, 6 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 13 | Down: 11 | New: 11
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Piper Jaffray analyst Neely Tamminga reiterated an Overweight rating and boosted her price target on Nordstrom (NYSE: JWN) to $87.00 (from $81.00) on a combo of solid top-line trends indicating market share gains amid a "meh" retail sales environment for apparel and clear and decisive plans around capital spending.

Tamminga commented, "The company reported better-thanexpected sales in FQ4 and is guiding top-line sales of +7%-9% in 2015 (FY16). What's likely most helpful for investors this Friday morning is our financial model in which we project out to 2020 based on management's guideposts. Valuation-wise, we are raising our EV/EBITDA multiple from 9x to 10x in view of this increased visibility. Applied to our FY16E EBITDA of $1,916M and assuming $827M in cash, $3,123M in debt, and 194M shares, our target moves to $87."

The firm trimmed FY 2016 EPS from $4.30 to $3.76 and FY 2017 EPS from $4.84 to $4.01.

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 $77.14 yesterday.



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Piper Jaffray, Neely Tamminga