Nordstrom upgraded on key partnerships and 'differentiated' assortment
Nordstrom Inc. was upgraded to neutral from underweight at J.P. Morgan based on investments and partnerships that have created what analysts call a "'differentiated' retail profile." Analysts raised the price target to $50 from $33. Nordstrom has upgraded its technology, service and store experience, analysts say, and partnerships with Nike Inc. , Top Shop, Madewell and Bonobos are highlighted in a Tuesday note. Even with e-commerce making up only 15% of the business versus 85% in-store, J.P. Morgan thinks Nordstrom is insulated from online competition thanks to high-quality real estate, omnichannel initiatives, and the off-price Rack and Hautlook concepts. Nordstrom shares are up 1.8% in premarket trading, and up 7.2% for the last three months. The S&P 500 index is up 5.7% for the past three months.
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