Nordstrom downgraded to Hold from Buy at Jefferies

Jefferies downgraded Nordstrom to Hold from Buy with a price target of $17, down from $18. The analyst views the stock’s current valuation as fair given the company’s current trajectory and more time needed to restore the pre-pandemic algorithm than hoped. Nordstrom’s relative volatility also continues to weigh on sentiment, which will take time to improve, the analyst tells investors in a research note. Jefferies is encouraged that Rack sales have accelerated and sees potential for continued momentum, but the lack of a margin recovery, Nordstrom still lagging, and inconsistent execution move it to the sidelines.