UBS Doubles Down on Nordstrom (JWN) Sell Rating
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UBS analyst Jay Sole reiterated a Sell rating and $12.00 price target on Nordstrom (NYSE: JWN) on the belief that the Street underestimates pressure on JWN earnings from share loss.
The analyst believes consumers are moving to online pureplay channels, value retailers such as TJX, and brands' DTC channels. While he does not yet have evidence to support the thesis, he stated "JWN's 1Q22 report did not give us a good reason to change our rating: JWN adjusted its FY22 guidance slightly upwards, to $3.20-$3.50 from $3.15-$3.50. We don’t view JWN’s guidance raise as a thesis changer. We note JWN delivered just a 0.9% 1Q22 EBIT margin in what was an exceptional environment for Softline companies focused on higher-income consumers. We think this shows JWN still faces major challenges, and this is what our Sell thesis is based on."
Shares of Nordstrom closed at $26.56 yesterday.
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