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How Nordstrom Stock Is Rated by Analysts

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Mar. 22 2018, Published 2:54 p.m. ET

Current ratings

Of the 23 analysts covering Nordstrom (JWN) stock on March 21, three (13%) recommended “buy,” 18 (78%) recommended “hold,” and two recommended “sell.” On March 13, Credit Suisse initiated coverage of Nordstrom stock with a “neutral” rating and a price target of $54.

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12-month price target

In the previous part of this series, we mentioned that Nordstrom has called off talks with the Nordstrom family regarding the proposal to go private. Following this announcement on March 20, there have been some revisions to the company’s price target. On March 21, Susquehanna lowered its price target for Nordstrom stock to $45 from $51, and Credit Suisse cut its price target to $50 from $54.

As of March 21, the 12-month price target for Nordstrom was $51.19, reflecting an upside potential of 7.3%. The company’s stock had risen 0.7% this year as of March 21.

Growth prospects

Nordstrom is taking several measures to improve its sales. The company’s off-price Nordstrom Rack business and online channels have been its major growth drivers. In fiscal 2017, Rack attracted six million new customers. After opening six full-line stores in Canada, Nordstrom is now geared up to open six more in the country in fiscal 2018. In the US market, the company’s store plans include the opening of one full-line store, 12 Rack stores, and the relocation of one Rack store in fiscal 2018.

The company is also investing in technology to enhance consumers’ shopping experience. In this direction, Nordstrom announced the purchase of two leading retail technology companies on March 8. The company acquired BevyUp, a maker of a digital selling tool, and MessageYes, a platform involved in conversational commerce.

Nordstrom has been improving its omnichannel capabilities through facilities such as its BOPIS (buy online, pick up in store) service, reserve online and try in store service, and Style Board.

The company continues to enhance its merchandise to attract more consumer traffic. For instance, on March 5, Nordstrom announced a partnership with Anthropologie to launch over 200 items from Anthropologie Home at 15 Nordstrom stores and on Nordstrom.com.

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