Nordstrom (JWN) Receives Rating Downgrade at Credit Suisse

NEW YORK (TheStreet) -- Shares of Nordstrom (JWN) are lower by 1.32% to $73.27 in pre-market trading on Thursday morning, following a rating downgrade to "neutral" from "outperform" at Credit Suisse.

The firm said it reduced its rating on the specialty fashion retailer based on its belief Nordstrom is likely to raise its capital spending over the next several quarters.

Credit Suisse cut its price target on Nordstrom to $76 from $85.

"Nordstrom is expected to increase capital spending by $439 million (or 51% y/y) to $1.3 billion in 2015, driving over half of the absolute dollars of growth in 2015," Credit Suisse said in an analyst note.

"Nordstrom's increase was largely due to its multi-pronged capital spending plan, including stepped up focus on IT/e-commerce, increased investment in their new Manhattan flagship, expansion of the full-line format in Canada and expansion of Rack in the U.S.," the firm continued.

Separately, TheStreet Ratings team rates NORDSTROM INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:

"We rate NORDSTROM INC (JWN) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins, increase in stock price during the past year and notable return on equity. We feel its strengths outweigh the fact that the company has had sub par growth in net income."

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