Nomura Securities maintains a 'Neutral' on Nordstrom (JWN); Q4 Review - Like The Company, Stock Not Cheap Though
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Price: $24.66 --0%
Rating Summary:
4 Buy, 30 Hold, 6 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
4 Buy, 30 Hold, 6 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Nomura Securities maintains a 'Neutral' on Nordstrom (NYSE: JWN) price target of $51.00.
Analyst, Paul Lejuez, said, "JWN has strong top-line momentum, but investments have limited EPS upside and this is likely to continue through F12. The company’s longer-term guidance for EBIT growth/margins is encouraging, but the market is unlikely to give the company credit without some evidence in F12 that investment growth is starting to pay off. JWN’s hefty capex spend over the next 5 yrs raises several questions in our minds. 4Q EPS of $1.11 vs. our est of $1.08 and cons of $1.10. Sales +12.6%, comps +7.1% (prev reported), and op margin +20bps."
"Positives: (1) Mgmt provided EBIT $ growth target of low double digits in F13/F14 (above our ests), (2) Guided F12 comps +4-6% (and mgmt is typically conservative with comp guidance), implying that strong top-line trends are continuing, and (3) Ecom +35% in 4Q. Negatives: (1) F12 EPS guidance of $3.30-$3.45 vs. consensus of $3.59, (2) Expect F12 capex of $480-$520MM (higher than we had forecast) and project $3.3BN total spend over next five yrs, (3) Merch margins down in 4Q and guided down in F12. We consider JWN a great company, but the stock is not cheap, trading at ~7x our F12E EBITDA, and we believe it may take some time before it becomes clear whether its investments are paying off."
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 $52.18 yesterday.
Analyst, Paul Lejuez, said, "JWN has strong top-line momentum, but investments have limited EPS upside and this is likely to continue through F12. The company’s longer-term guidance for EBIT growth/margins is encouraging, but the market is unlikely to give the company credit without some evidence in F12 that investment growth is starting to pay off. JWN’s hefty capex spend over the next 5 yrs raises several questions in our minds. 4Q EPS of $1.11 vs. our est of $1.08 and cons of $1.10. Sales +12.6%, comps +7.1% (prev reported), and op margin +20bps."
"Positives: (1) Mgmt provided EBIT $ growth target of low double digits in F13/F14 (above our ests), (2) Guided F12 comps +4-6% (and mgmt is typically conservative with comp guidance), implying that strong top-line trends are continuing, and (3) Ecom +35% in 4Q. Negatives: (1) F12 EPS guidance of $3.30-$3.45 vs. consensus of $3.59, (2) Expect F12 capex of $480-$520MM (higher than we had forecast) and project $3.3BN total spend over next five yrs, (3) Merch margins down in 4Q and guided down in F12. We consider JWN a great company, but the stock is not cheap, trading at ~7x our F12E EBITDA, and we believe it may take some time before it becomes clear whether its investments are paying off."
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 $52.18 yesterday.
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