Credit Suisse makes Nordstrom, Burlington top retail picks for 2017

Craig F. Walker | The Denver Post | Getty Images

Nordstrom is best positioned to capture a large share of online department store sales, according to analysts at Credit Suisse, who upgraded the stock to outperform from market perform on Wednesday.

"Our analysis suggests eCommerce will generate the majority of sales and profit growth for the overall apparel industry over the next 10 years. With eCommerce penetration reaching 38% of total softlines sales by 2030, we believe investment in eCommerce is a baseline requirement for retailers looking to gain market share," equity analyst Christian Buss wrote in a research note.

In the next 12 months, Credit Suisse predicts, shares of Nordstrom could trade as high as $58, a nearly 31 percent gain from Tuesday's close.