Nordstrom Inc. shares are down 3.8% in premarket trading after the high-end retailer was downgraded to underweight from neutral at J.P. Morgan. The price target was lowered to $48 from $55. Analysts published a note Friday following a meeting with Nordstrom executives, writing that the company did not present “multi-year silver bullets” to drive sales growth. “Nordstrom’s top-line profile has moderated to low-to-mid single digits with management citing tighter expense control as a near-term fix rather than long-term model solution clarifying its mid-teens ROIC target as more an ‘aspiration’ rather than near-term reality,” the note said. J.P. Morgan also cited “online cannibalization of bricks volume” and the costs associated with the constant tech upgrades that are necessary for driving online traffic. Nordstrom shares up 11% year to date while the S&P 500 index is up 10.7% for the same period.
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