JWN Remains One Of Morgan Stanley's Top Picks

Nordstrom Inc. JWN remains one of Morgan Stanley's top picks in the department store space.

“We expect upward earnings revisions to drive the stock higher over the next 12 months,” Morgan Stanley writes. “Our FY11 EPS forecast of $3.24 is 17 cents above the Street.

“Our dinner with mgmt reinforces our view that there's a lot to like about the JWN story: 1) consumer strength at the high-end, 2) pricing power in an inflationary environment, 3) continued improvement in credit trends, 4) a superior internet/mobile platform, and 5) best-in-class ROIC (MS est. 21.6% in 2010 vs. dept store average of 9%).”

Nordstrom closed Tuesday at $42.86.