Citigroup Gets Cautious on Macy’s, Nordstrom; Expecting Weak Second Half (M, JWN)
The firm cut its rating on JWN from “Buy” to “Neutral” with a $52 price target, suggesting a 7% upside to the stock’s Tuesday closing price of $48.62. Citigroup said it made the move amid a cautious second half outlook.
Meanwhile, Citigroup also downgraded M from “Buy” to “Neutral” with a $37 price target (8%) upside. Similarly, the firm expects a tepid second half of 2012 for the company.
Nordstrom shares fell 43 cents, or -0.9%, in premarket trading Wednesday, while Macy’s shares plunged 89 cents, or -2.6%.
The Bottom Line
Shares of Nordstrom Inc. (JWN) have a 2.22% dividend yield, based on last night’s closing stock price of $48.62. The stock has technical support in the $44-$45 price area. If the shares can firm up, we see overhead resistance around the $51-$53 a share. Shares of Macy’s (M) have a 1.17% dividend yield, based on last night’s closing stock price of $34.20. The stock has technical support in the $30-$32 price area. If the shares can firm up, we see overhead resistance around the $38-$39 a share.
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