Analyst upgrades Nordstrom to 'Neutral'

NEW YORK - An analyst upgraded shares of luxury department store chain Nordstrom Inc. on Monday amid a decline in the stock price and better margins.

Goldman Sachs analyst Adrianne Shapira upgraded the stock to "Neutral" and said shares have declined 18.9 percent compared with a 1.5 percent decline for the Standard & Poor's 500 since she downgraded the stock on May 18. Over the past year, shares have declined 38.8 percent, she added.

Shapira said the stock should no longer be rated "Sell," as its valuation is taking into account "a muted sales and margin recovery."

Shapira kept a "Buy" rating on fellow department store operator Macy's, expecting sales and margins to stabilize sooner. She also expects cost savings to boost earnings per share in the near term.

Last month, Nordstrom said same-store sales fell 13.1 percent in May, worse than Wall Street expectations.

Same-store sales, or sales at stores open at least a year, are a key indicator of retailer performance.

The stock rose 36 cents to $18.89 in afternoon trading.

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