From Financial Modeling Prep: 2025-04-04 15:47:00

Citi downgraded Nordstrom (NYSE:JWN) from Neutral to Sell, with a price target of $22, down from $25. The firm cited an unfavorable risk/reward balance as shares trade near a potential buyout price but face sharp downside if the deal falls through.

The downgrade was prompted by concerns of investor complacency surrounding the pending acquisition bid by the Nordstrom family and Liverpool at $24.25 per share. Shares are currently trading just below that level at $23.96, indicating market confidence in the deal’s completion.

While other retail stocks saw significant drops after the Liberation Day tariff announcement, Nordstrom only dipped 2%, likely due to buyout speculation. Citi warns of up to 30% downside if the deal fails, with minimal upside if the acquisition goes through at the proposed price.

Citi’s bearish stance is justified by the heavily skewed risk/reward setup, with the potential for significant losses if the deal does not close. The firm believes that the current situation poses more risk than reward for investors, leading to the Sell rating on Nordstrom.



Read more at Financial Modeling Prep:: Citi Cuts Nordstrom to Sell: Limited Upside, Major…