KeyBanc Capital Markets analyst Ashley Owens downgraded Nordstrom
The analyst highlights several encouraging key priorities, including improvements in the Nordstrom banner, identification of operational efficiencies, and continued in Rack growth.
Sell-through during the second quarter's anniversary sale met expectations, while regular-price sales and increased customer visits reflect solid brand positioning.
With over 50% of revenue and approximately 60% of profit still ahead, the analyst notes that factors such as a more promotional holiday season and consumer pressures will influence performance.
Looking ahead, the analyst recognizes that the possibility of a go-private transaction could impact share price momentum.
On September 4, the Nordstrom Family and Liverpool submitted a proposal to acquire the company for $23 per share in cash.
The analyst notes the current valuation is fair, noting that the proposed price offers limited upside compared to the previous target of around $24. While the analyst maintains a positive outlook on the firm's strategic priorities for 2024, uncertainty surrounding the proposed transaction could weigh on potential stock price gains.
