UPDATE: Goldman Sachs Upgrades Nordstrom to Buy

Goldman Sachs raises its rating on Nordstrom

to Buy from Neutral and raise its price target $11 to $65 to reflect secular share gains. Goldman Sachs notes, "We are upgrading JWN to Buy (from Neutral) to reflect its secular share gainer status that we believe is currently being underappreciated by the market. We are raising our FY12E/13E/14E EPS to $3.60/$4.20/$4.95 from $3.50/$4.00/NA and our price target to $65 (from $54) as we see +19% upside from: 1) EPS upside: continued comp outperformance and improving flow through in 2013 as investment spending peaks and moderates in 2012 and 2) multiple re-rating: we expect JWN to hold its premium 15.5x NTM P/E, but as future growth stems from asset light online growth which should power returns higher, we expect further multiple expansion." JWN closed at $54.71 a share on Wednesday.