Goldman Sachs analyst Alexandra Walvis downgraded Nordstrom (JWN) to Sell from Neutral and lowered her price target for the shares to $30 from $37. The analyst is taking a "conservative stance" on the retail sector. The headwinds in Q2 have proven persistent, says the analyst, who sees risk that a second half of the year inflection in earnings growth may not materialize for many companies. Walvis recommends a selective approach in Apparel and prefers stocks with "clear" second half catalysts or strategic actions to drive momentum. She reiterates Buy ratings on both Under Armour (UAA) and Tapestry (TPR) and downgraded both Nordstrom and Ross Stores (ROST) to Sell. She believes Nordstrom's ongoing "comp headwinds" in full line and off price stores are compounded by its ongoing strategic investments and the opening of the company's flagship in New York City.
Capri Holdings (CPRI) shares could fall to the low-to-mid $20s if Tapestry's (TPR) $57 per share takeover is successfully blocked by the Federal Trade Commission, Yiqin Shen of Bloomberg reports, citing a survey of 20 merger-arbitrage specialists. The survey, conducted on Tuesday, focuses on merger-arbitrage estimates on the Capri's downside price - a level that reflects the stock's fundamental value by the end of 2024, when the outcome of the FTC's challenge is expected to be either upheld or overturned in court, Shen notes. Shares of Capri Holdings are down 5% to $34.81 in midday trading.
Get caught up quickly on the top news and calls moving stocks with these five Top Five lists. 1... To see the rest of the story go to thefly.com. See Story Here
Get caught up quickly on the top news and calls moving stocks with these five Top Five lists. 1... To see the rest of the story go to thefly.com. See Story Here