The firm upgraded the retailer to an “outperform” rating and reiterated its call for shares to hit $57.
“Post the company’s investor meeting held yesterday in Los Angeles, we came away with renewed optimism around Nordstrom’s longer-term growth trajectory,” analyst Dana Telsey wrote in a note to clients Wednesday. “A well-established and highly regarded management team… remains in place to drive the company towards its goal of becoming a leading fashion retailer in the digital world.”
On Tuesday, Nordstrom outlined its 5-year financial targets for earnings to grow 5 to 6 percent from 2017 to 2022, with annualized sales growing at a rate of 3 to 4 percent. Management also expects to see further market share gains from the company’s “generational investments in digital sales.”
Despite the company’s growth targets, HPM Partners’ Jim Lebenthal believes that it’s still too early to buy the stock.