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

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


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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