Fashion retailer Nordstrom, Inc. (JWN) on Friday caught some continued bullish commentary from analysts at Deutsche Bank.
Despite JWN’s recent weaker-than-expected earnings, the firm maintained its “Buy” on JWN, as well as its $66 price target. That target suggests a 22% upside to the stock’s Thursday closing price of $53.53.
Analyst Charles Grom commented, “While we respect the knee jerk reaction, cooler heads should prevail presenting a nice buying opportunity. To this end, both the aforementioned EPS miss and 2Q guidance are entirely a function of JWN’s technology spend being front-end loaded, which until today was undisclosed by JWN. Said differently, JWN’s EBIT flow through in 1H will be negative 3.0% versus an acceleration to +18% in 2H. Equally critical, JWN reiterated that ’12 is a ‘step-up’ investment year, implying that its flow through in ’13 will noticeably accelerate. Net, we see the AH action as another famous dislocation opportunity.”
Nordstrom shares fell $1.90, or -3.6%, in morning trading Friday.
The Bottom Line
Shares of Nordstrom Inc. (JWN) have a 2.02% dividend yield, based on last night’s closing stock price of $53.53. The stock has technical support in the $48-$50 price area. If the stock can firm up, we see overhead resistance around the all-time high price level of $57 a share.
Nordstrom, Inc. (JWN) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
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