Guggenheim analyst Robert Drbul maintained a Hold rating on Nordstrom Inc (NYSE: JWN) yesterday. The company’s shares closed yesterday at $52.09, close to its 52-week high of $54.11.
Drbul observed:
“We attended L.A., which included presentations from CFO Ken Worzel. While we remain impressed by several of the investments and initiatives JWN has undertaken in recent years, we believe plans to accelerate the top-line and expand EBIT margin (EBIT to outpace sales growth) could prove ambitious. At 15x our ’19E EPS (a premium to M/KSS at 11x/12x, respectively), we believe shares are fairly valued. We remain NEUTRAL-rated. JWN introduced five-year financial targets and reiterated FY18 guidance. Through FY22 (from FY17), JWN expects net sales to grow at a 3% to 4% annual CAGR ($18bn in sales by FY17) vs. overall market growth of ~1% over that time.”
According to TipRanks.com, Drbul is a 5-star analyst with an average return of 17.8% and a 78.6% success rate. Drbul covers the Services sector, focusing on stocks such as National Vision Holdings Inc, Lululemon Athletica Inc, and Ascena Retail Group.
Nordstrom Inc has an analyst consensus of Moderate Buy, with a price target consensus of $60, representing a 15.2% upside. In a report issued on July 2, Cowen & Co. also downgraded the stock to Hold with a $51 price target.
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Nordstrom Inc’s market cap is currently $8.74B and has a P/E ratio of 19.11. The company has a Price to Book ratio of 8.17.
Based on the recent corporate insider activity of 91 insiders, corporate insider sentiment is negative on the stock.
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Nordstrom, Inc. engages in the manufacture and trade of clothes, shoes, and accessories. It operates through the following business segments: Retail; Credit; and Corporate/Other. The Retail segment manages physical stores and online shops. The Credit segment offers a range of payment options to customers.
