UPDATE: Barclays Starts Nordstrom (JWN) at Equalweight
Tweet
Share
E-mailGet Alerts JWN Hot Sheet
Price: $19.26 -2.33%
Rating Summary:
6 Buy, 27 Hold, 6 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 11 | New: 14
Rating Summary:
6 Buy, 27 Hold, 6 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 11 | New: 14
Join SI Premium – FREE
(Updated - March 18, 2014 1:54 PM EDT)
Barclays initiated coverage on Nordstrom (NYSE: JWN) with an Equalweight rating and a price target of $65.00.
Analyst Joan Payson said, "While we are impressed by the company's advances in e-commerce, strong track record of growth, and investments into growing underpenetrated segments of the business, we are cautious around certain expansion plans."
"We expect Nordstrom Rack, Direct and Haute Look could grow to roughly 50% of sales by 2017 compared to only 38% today, implying mid teens growth for Rack and high teens to low 20’s growth for online segments. While we see a gap in the Canada market for Nordstrom’s offering, we see risks associated with entering a new market, particularly in the face of increasing competition. Although we believe the company's measured approach to entering the market is differentiated from other U.S. retailers, we still expect Canada could be dilutive until at least 2017. Nordstrom has substantial revenue opportunities longer term, but we expect expansion plans to weigh on profitability in the near to mid term, suppressing earnings growth," she added.
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 $62.09 yesterday.
Barclays initiated coverage on Nordstrom (NYSE: JWN) with an Equalweight rating and a price target of $65.00.
Analyst Joan Payson said, "While we are impressed by the company's advances in e-commerce, strong track record of growth, and investments into growing underpenetrated segments of the business, we are cautious around certain expansion plans."
"We expect Nordstrom Rack, Direct and Haute Look could grow to roughly 50% of sales by 2017 compared to only 38% today, implying mid teens growth for Rack and high teens to low 20’s growth for online segments. While we see a gap in the Canada market for Nordstrom’s offering, we see risks associated with entering a new market, particularly in the face of increasing competition. Although we believe the company's measured approach to entering the market is differentiated from other U.S. retailers, we still expect Canada could be dilutive until at least 2017. Nordstrom has substantial revenue opportunities longer term, but we expect expansion plans to weigh on profitability in the near to mid term, suppressing earnings growth," she added.
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 $62.09 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- BofA Securities Starts GE Vernova (GEV) at Neutral, 'Multiyear turnaround amid positive demand backdrop'
- Teradyne (TER) Tops Q1 EPS by 18c
- Craig-Hallum Assumes Guardant Health (GH) at Buy, 'We think that GH is undervalued'
Create E-mail Alert Related Categories
Analyst Comments, Analyst EPS View, New CoverageRelated Entities
Barclays, EarningsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
