Wells Fargo Initiates Coverage on Nordstrom at "Market Perform" (JWN)

Wells Fargo Initiates Coverage on Nordstrom at “Market Perform” (JWN)

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Wells Fargo analysts believe that Nordstrom, Inc.’s (JWN) high investment spending is good for the long-term, but will hurt near term results. As such, the analysts start the speciality retailer with a tepid rating.

The analysts rate JWN as “Market Perform” and see shares reaching $54 to $58. At the low end of this target range, it suggests a 7% downside to Monday’s closing price of $58.09.

“JWN is differentiated from other department stores and is a best-in-class retailer in our view, earning above-average margins and returns. While high investment spending may be good for the long term, we expect it to continue to impede near term results. To its credit, this is a management team that will not sacrifice the long term to achieve short-term results, but we believe this will translate into a stock that is rangebound,” said a Wells Fargo analyst.

Nordstrom shares were up 18 cents, or +0.31%, during Tuesday morning trading. The stock is up +8.49% year-to-date.

The Bottom Line
Shares of Nordstrom (JWN) have a dividend yield of 2.06% based on Tuesday’s intraday trading price of $58.27 and the company’s annualized dividend payout of $1.20 per share.

Nordstrom, Inc. (JWN) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

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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