1. Jen Redding, Wedbush Securities
Rating: Neutral
Price target: $36, from $24
"We came away more constructive on Nordstrom's local market opportunity as synergies in customer spend for cross-platform/cross-price shoppers make sense and resonate with consumers in our proprietary research. Additional Local rollouts are planned for JWN's top 10 markets in 2020. Management's tone was upbeat and all events were well-attended," Wedbush analyst Jen Redding wrote in a note Wednesday.
"Over the long term, we continue to see long term value in shares of Nordstrom, and see benefits from the company's localized market strategy, unique limited distribution brand growth, and leverage owing to a powerful omni channel as driving value in time."
2. Dana Telsey, Telsey Advisory Group
Rating: Market perform
Price target: $32
"Nordstrom's entry into the New York market should help drive a multiyear sales lift in the region, which the company has previously identified as a $700 million-plus full-price opportunity," Dana Telsey of Telsey Advisory Group wrote in a Wednesday note.
"However, for the company overall, we continue to look for indications that marketing efforts and improvement in product assortments are helping to drive traffic/conversion following weak sales performance over the past three quarters."
3. Robert Drbul, Guggenheim Securities
Rating: Neutral
Price target: None
"We believe expansion in NYC is a logical next-step for Nordstrom's market strategy, given its size," Guggenheim Securities' Robert Drbul wrote in a note Tuesday after Nordstrom's soft opening. Beyond NYC, the company has plans to open stores in San Francisco, Dallas, and Chicago by the holiday season in late 2019.
He added: "The primary goal of such expansions is ultimately to gain share faster and grow in these key markets. The company believes it has built the backbone for its local market strategy in LA, limiting the capital intensiveness/ investment needed to expand the strategy to additional markets."
