William Blair analyst Dylan Carden has maintained their neutral stance on JWN stock, giving a Hold rating on February 25.
Dylan Carden has given his Hold rating due to a combination of factors influencing Nordstrom’s current market position. The company reported strong fourth-quarter sales driven by holiday demand and an increase in comparable sales, which exceeded expectations. This was accompanied by a notable improvement in gross margins, attributed to effective markdown management and reduced promotional activity.
Despite these positive developments, Carden remains cautious due to the lack of forward guidance and concerns over inventory levels, which have risen significantly. Additionally, the pending acquisition offer from the Nordstrom family and El Puerto de Liverpool limits potential stock price growth, as it caps near-term upside. The risk of the acquisition deal not going through, combined with the challenges faced by the department store sector, further supports the Hold rating.
According to TipRanks, Carden is a 4-star analyst with an average return of 20.3% and a 58.82% success rate. Carden covers the Consumer Cyclical sector, focusing on stocks such as thredUP, Abercrombie Fitch, and Nordstrom.
In another report released on February 25, Telsey Advisory also maintained a Hold rating on the stock with a $24.00 price target.