Citigroup Gets Cautious on Macy's, Nordstrom; Expecting Weak Second Half (M, JWN)

Citigroup Gets Cautious on Macy’s, Nordstrom; Expecting Weak Second Half (M, JWN)

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Retail giants Nordstrom, Inc. (JWN) and Macy’s, Inc. (M) on Wednesday both caught big downgrades from analysts at Citigroup.

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.

Neither Nordstrom, Inc. (JWN) nor Macy’s, Inc. (M) are currently recommended by Dividend.com.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

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