Analyst Matthew Boss also increased his stock-price target to $41 from $26, saying in a note to investors that he saw "signs of structural change" at the Seattle retailer.
In addition, Boss said Nordstrom's transitory headwinds are in the "later innings." And he noted that the stock has underperformed the the S&P 500 Index by 45% over the past 12 months.
In November, Nordstrom reported third-quarter earnings more than doubled to 81 cents a share from 39 cents in the year-earlier quarter. Shares outstanding fell 9.6% to 155.8 million. Total revenue was $3.67 billion against $3.75 billion.
A survey of analysts by FactSet was expecting earnings of 64 cents a share on revenue of $3.67 billion.
Selling, general and administrative expense as a percentage of net sales was 31.8%, down 1.32 percentage points from the year-earlier quarter.
Digital sales rose 7% from a year earlier and now represent more than a third of overall revenue. That gain helped offset a 4.1% decline in full-price sales, while off-price sales rose 1.25 from a year earlier.
Nordstrom expects to earn $3.30 to $3.50 a share for the fiscal year, compared with the FactSet-derived consensus estimate of $3.29. Its previous outlook was $3.25 to $3.50 a share.
Nordstrom said it didn't expect tariffs on China-made imports to materially affect its fiscal 2020 earnings.
The company is looking for an about 2% drop in net sales for the fiscal year.
At last check Nordstrom shares were 1.7% higher at $40.55.