KeyBanc Capital Markets analyst Ashley Owens downgraded Nordstrom ( JWN ) from Overweight to Sector Weight.

The analyst highlights several encouraging key priorities, including improvements in the Nordstrom ( JWN ) banner, identification of operational efficiencies, and continued in Rack growth.

Sell-through during the second quarter’s anniversary sale met expectations, while regular-price sales and increased customer visits reflect solid brand positioning.

With over 50% of revenue and approximately 60% of profit still ahead, the analyst notes that factors such as a more promotional holiday season and consumer pressures will influence performance.

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Looking ahead, the analyst recognizes that the possibility of a go-private transaction could impact share price momentum.

On September 4, the Nordstrom Family and Liverpool submitted a proposal to acquire the company for $23 per share in cash.

The analyst notes the current valuation is fair, noting that the proposed price offers limited upside compared to the previous target of around $24. While the analyst maintains a positive outlook on the firm’s strategic priorities for 2024, uncertainty surrounding the proposed transaction could weigh on potential stock price gains.

Price Action: JWN shares are trading lower by 1.55% to $22.29 at last check Thursday.

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