Nordstrom price target lowered to $13 from $14 at BofA

BofA lowered the firm’s price target on Nordstrom (JWN) to $13 from $14 and keeps an Underperform rating on the shares. Delinquencies have been normalizing higher versus low rates during COVID, but Macy’s (M) reduction of its credit income based on a sharp rise in delinquencies in June and July was “worse than we expected,” says the firm, which has lowered its estimates for Kohl’s (KSS) and Nordstrom to reflect a worsening credit cycle. The firm expects Kohl’s and Nordstrom will see a decline in credit revenue in the coming quarters as “rising delinquencies turn into charge-offs,” the analyst added.