J.P. Morgan Neutral On Nordstrom (JWN)

J.P. Morgan Chase & Co. has a Neutral rating and a $40 price target on Nordstrom, Inc. JWN after the company reported earnings yesterday after the bell. In a note sent to clients, J.P. Morgan writes, "However, reading between the lines, management's outlook for “flattish” comps in 4Q should ultimately prove conservative (JPM modeling SSS rising 2.5%) and so should its EPS view – hence why we are above the range at $2.67. All told, in the low $40s, the stock looks fairly valued, in our view, trading at 13.8x our 2011E EPS of $3.05, particularly versus Macy's and Kohl's which trade at 11.0x and 12.4x our FY11 EPS estimates, respectively." Shares of JWN gained 43 cents yesterday to close at $41.83, a gain of 1%.