On May 31, 2024, Zachary Warring from CFRA set a price target of $16 for Nordstrom (NYSE:JWN), which was trading at $22.1 at the time of the announcement. This

Nordstrom's Price Target and Financial Performance Analysis


blog post cover photo

Image credit: Google Images

  • CFRA downgrades Nordstrom to a "Sell" rating with a new price target of $16, indicating a potential decrease of approximately 27.6%.
  • Nordstrom reports a wider-than-expected Q1 loss but surpasses revenue expectations due to strong sales at Nordstrom Rack stores.
  • The company is taking steps to address external theft and improve operational efficiency amidst financial and market challenges.

On May 31, 2024, Zachary Warring from CFRA set a price target of $16 for Nordstrom (NYSE:JWN), which was trading at $22.1 at the time of the announcement. This new price target represents a decrease of approximately 27.6% from the stock's price when posted. This analysis led CFRA to downgrade Nordstrom to a "Sell" rating, as detailed in their report published on StreetInsider. Nordstrom Inc., a well-known department-store chain, has been focusing on its Rack business as a key component for growth. This strategy is part of the company's efforts to drive expansion through its off-price stores.

Despite experiencing a wider-than-expected loss in the first quarter, Nordstrom surpassed analysts' revenue expectations, primarily due to a significant sales increase at its off-price Nordstrom Rack stores. This performance underscores the critical role that the Rack stores play in Nordstrom's overall financial health. However, the company also faced challenges, including a 7.3% decline in its shares during extended trading on Thursday following the announcement of the first-quarter loss. The department-store chain reported a net loss of $39 million, equivalent to a loss of 24 cents per share, which contributed to CFRA's decision to downgrade the stock.

In addition to focusing on its Rack business, Nordstrom is addressing issues of external theft within its transportation network. This move aims to safeguard its operations and enhance efficiency, indicating the company's proactive approach to overcoming operational challenges. Despite the initial setbacks, Nordstrom's shares rebounded and turned higher in early trading on Friday, reflecting investor optimism about the company's growth strategies and its ability to navigate through difficulties.

The stock's performance over the past year, with shares touching a low of $12.88 and a high of $23.53, and a market capitalization of approximately $3.61 billion, highlights the volatility and the challenges faced by the retail sector. Nordstrom's efforts to leverage its Rack stores for growth, coupled with measures to improve operational efficiency, are key factors that investors are closely watching. However, the downgrade by CFRA, based on the recent financial results and the set price target, suggests that there are concerns about the company's ability to sustain its growth trajectory in the near term.

Other Blogs

Nov 25, 2023 6:39 AM - Parth Sanghvi

DCF Valuation vs. Comparable Companies Analysis: Choosing the Right Valuation Method

Choosing the Right Valuation Method: DCF vs. Comparable Companies Analysis Introduction: Valuation methods play a pivotal role in determining the fair value of a company, aiding investors in making informed investment decisions. Two commonly used methods, DCF Valuation and Comparable Companies A...

blog post title

Dec 23, 2023 2:19 AM - Parth Sanghvi

Understanding the Limitations of DCF Analysis: A Guide to Overcoming Challenges

Introduction: Discounted Cash Flow (DCF) analysis stands as a cornerstone in valuing investments, yet its efficacy is contingent upon various assumptions and methodologies. While a powerful tool, DCF analysis comes with inherent limitations and challenges that investors must acknowledge to make i...

blog post title

Dec 25, 2023 2:28 AM - Parth Sanghvi

Integrating Sustainability into Valuations: Navigating ESG Factors within the Discounted Cash Flow (DCF) Model

Introduction: The investment landscape is undergoing a profound shift with a heightened emphasis on sustainability and responsible investing. In this blog post, we explore the intersection of Environmental, Social, and Governance (ESG) considerations within the Discounted Cash Flow (DCF) model, h...

blog post title


Financial Modeling Prep API provides real time stock price, company financial statements, major index prices, stock historical data, forex real time rate and cryptocurrencies. Financial Modeling Prep stock price API is in real time, the company reports can be found in quarter or annual format, and goes back 30 years in history.
2017-2024 © Financial Modeling Prep