Nordstrom downgraded to Sell from Neutral at Citi

Citi analyst Paul Lejuez downgraded Nordstrom (JWN) to Sell from Neutral with a price target of $22, down from $25. While the stocks in the specialty softlines and department store group declined 15% on average following President Trump’s tariff announcement, Nordstrom only declined 2% because there is a pending deal for the Nordstrom family and Liverpool to purchase the company at $24.25 per share, the analyst tells investors in a research note. The firm says that Nordstrom trading at $23.96, the risk/reward “skews negative.” The transaction “may very well go through as planned, but given the circumstances, the probability is not 100%,” contends Citi. If the deal does not go through as proposed, the firm sees “significant downside (as much as 30%).”