Maxim Group Starts Nordstrom (JWN) at Buy
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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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Maxim Group initiates coverage on Nordstrom (NYSE: JWN) with a Buy. PT $70.00.
Maxim analyst Rick Snyder notes, "We arrive at our price target by applying a 7.5x EV/EBITDA multiple to our 2015 EBITDA estimate of $2,165.0 million. We adjust back by one year at a 5.0% discount rate. Nordstrom shares have recently traded between a range of 7.2x and 7.9x EV/EBITDA. Based on 1.) Nordstrom's investment in omni-channel selling; 2.) the relatively high income level of Nordstrom's customers; and 3.) its differentiated position within the department store sector, 4.) Expansion in the Nordstrom Rack division (which produce a higher ROIC than full line Nordstrom stores) should accelerate square footage growth to a mid single digit rate from low single digits previously, we believe that Nordstrom deserves a premium over the 7.0x multiple we use to value typical department stores."
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 $58.20 yesterday.
Maxim analyst Rick Snyder notes, "We arrive at our price target by applying a 7.5x EV/EBITDA multiple to our 2015 EBITDA estimate of $2,165.0 million. We adjust back by one year at a 5.0% discount rate. Nordstrom shares have recently traded between a range of 7.2x and 7.9x EV/EBITDA. Based on 1.) Nordstrom's investment in omni-channel selling; 2.) the relatively high income level of Nordstrom's customers; and 3.) its differentiated position within the department store sector, 4.) Expansion in the Nordstrom Rack division (which produce a higher ROIC than full line Nordstrom stores) should accelerate square footage growth to a mid single digit rate from low single digits previously, we believe that Nordstrom deserves a premium over the 7.0x multiple we use to value typical department stores."
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 $58.20 yesterday.
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