Morgan Stanley Reiterates Overweight on Nordstrom (JWN)

Morgan Stanley is out with its report today on Nordstrom JWN, reiterating Overweight. In a note to clients, Morgan Stanley writes, "We reiterate our Overweight rating on JWN shares. We believe high-end department stores are better positioned than mid-tier peers to combat cost inflation, attributable to greater pricing power. JWN is one of the few names in the group for which we are above consensus on 2011 gross margins. In addition, we think credit could serve as a potential source of EPS upside surprise for JWN in 2011." Shares of JWN closed Monday at $45.38.