UPDATE: Citi Starts Nordstrom (JWN) at Buy

Citi initiated coverage on Nordstrom (NYSE: JWN) with a Buy rating and a price target of $92.00. Analysts think Nordstrom is making appropriate investments.

"Sometimes the market penalizes JWN for spending too much on SG&A and capex, but it’s the right thing to do, and strong recent results help support this assertion. We believe making these appropriate investments has positioned them well for future growth in both its full price and Rack concepts, and F15 will mark the peak capex year. Though we do not foresee EBIT margins going higher, we expect FCF/ROIC to inflect positive in F16 and increase steadily from there," said Citi.

For an analyst ratings summary and ratings history on Nordstrom click here. For more ratings news on Nordstrom click here.

Shares of Nordstrom closed at $73.27 yesterday.

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