UBS analyst Jay Sole downgraded Nordstrom (JWN) to Sell from Neutral with an unchanged price target of $30.
The retailer closed Tuesday down 2% to $37.11.
The stock's 48% jump since August 20 is unjustified, Sole tells investors in a research note. The analyst does not believe Nordstrom's fundamentals have changed, and he expects a "weak" holiday shopping season, tariffs, and ongoing e-commerce disruption to pressure the company's earnings. Sole thinks the stock's price-to-earnings ratio will revert to 10-times from 11.6-times as the market "takes an increasingly bearish" view of Nordstrom's long-term earnings outlook.
His Q4 and fiscal 2020 earnings estimates are 6% and 12% below consensus, respectively.
Comments
Log in or sign up to join the conversation.