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Nomura Upgrades Nordstrom to “Buy”; Inflection Point Coming? (JWN)

By Dividend.com,  June 01, 2012, 09:44:42 AM EDT

Fashion specialty retailer Nordstrom, Inc. ( JWN ) on Friday caught a big upgrade from analysts at Nomura Securities.

The firm boosted its rating on JWN from "Neutral" to "Buy" with a $55 price target, suggesting a 16% upside to the stock's Thursday closing price of $47.37.

A Nomura analyst commented, "The company's strong execution, enviable customer base, and best-in-class ROIC stand out in our retail universe. We believe we are nearing an inflection point in the EBIT margin, top-line momentum remains strong, and growth in the Rack concept is driving higher ROIC. With the stock (5)% YTD vs our group +14%, investors are presented with an attractive buying opportunity as JWN trades at an EV/EBITDA multiple (5.5x) in line with its department store peers. Maintain F12E/F13E EPS of $3.54/$3.96 vs Street $3.44/$3.92, respectively."

Nordstrom shares fell 33 cents, or -0.7%, in premarket trading Friday.

The Bottom Line
Shares of Nordstrom, Inc. ( JWN ) have a 2.28% dividend yield, based on last night's closing stock price of $47.37. The stock has technical support in the $42-$45 price area. If the shares can firm up, we see overhead resistance around the $50-$51 price levels.

Nordstrom, Inc. ( JWN ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .




The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.


This article appears in: Investing, Stocks

Referenced Stocks: JWN



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