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.
Nasdaq quotes delayed at least 15 minutes, all others at least 20 minutes.
Markets are closed on certain holidays. Stock Market Holiday List
By accessing this page, you agree to the following
Press Release Service provided by PRConnect.
Stock quotes supplied by Telekurs USA
Postage Rates Bots go here