Key Takeaways:
- Nordstrom's stock faces a challenging outlook as Citi downgrades its rating.
- Analysts project a mixed future for the stock with potential downside risks.
- GuruFocus metrics suggest a potential overvaluation of the stock.
Nordstrom Inc. (NYSE: JWN) experienced a decline of 2.3% in its stock value following Citi's decision to downgrade the stock from neutral to sell. The primary concern expressed by the analyst was the unfavorable risk/reward profile, especially considering the planned acquisition by the Nordstrom family and El Puerto de Liverpool. Analyst Paul Lejuez reduced the price target to $22, highlighting potential pitfalls if the acquisition is unsuccessful.
Wall Street Analysts' Projections
The consensus among 11 analysts suggests an average price target of $23.53 for Nordstrom Inc. (JWN, Financial) over the next year. This includes a high estimate of $25.00 and a low estimate of $18.28. The average target signifies a slight downside of 0.36% from the current share price of $23.61. Further detailed estimates are available on the Nordstrom Inc (JWN) Forecast page.
The consensus recommendation from 14 brokerage firms places Nordstrom Inc. (JWN, Financial) at an average brokerage recommendation score of 3.1, indicative of a "Hold" recommendation. This rating lies on a scale from 1 to 5, with 1 representing a "Strong Buy" and 5 indicating a "Sell".
Analyzing the GF Value Estimate
According to GuruFocus metrics, the estimated GF Value for Nordstrom Inc. (JWN, Financial) over the next year is projected at $20.20. This valuation suggests a potential downside of 14.44% from the current price of $23.61. The GF Value represents GuruFocus' assessment of the fair worth of the stock, derived from its historical trading multiples, past business growth, and future business performance estimates. More comprehensive data is accessible on the Nordstrom Inc (JWN) Summary page.
