Goldman Sachs Increases EPS Estimates on Nordstrom, Maintains Buy (JWN)

Goldman Sachs increased its earnings per share estimates on Nordstrom JWN. At the same time, Goldman left its rating unchanged at Buy. In a research report published today, Goldman states, "we are raising EPS based on: 1) greater comp run way - productivity analysis shows that today's $397 sales/sq ft are further off former $435 peaks due to a higher online and Rack penetration. With full-line sales/sq ft off 13% from peak levels, we are raising our 2011 and 2012 comps to 5.7% and 4% from 4.7% and 3%, 2) greater buyback activity given today's approximate $1bn authorization which assumes $100mm buyback per quarter up from $50 mm prior. We reiterate our Buy rating as strengthening core momentum should offset near-term dilution." Goldman currently has a price target of $53 on Nordstrom. In yesterday's trading, Nordstrom added 0.97% to its value to close the day at $49.17. Its shares lost 2.07% in today's pre-market trading, however. At the moment, Nordstrom is trading at $48.15.