In a report issued Friday, Credit Suisse upgraded its rating of Nordstrom JWN from Neutral to Outperform with a target price of $78.
With news overnight that Nordstrom will be putting its $2 billion credit card receivables portfolio up for sale, analyst Michael Exstein and his team see this as a "bridge to the likely earning acceleration in 2016."
Assuming that Nordstrom completes this sale, it should be poised for higher earnings in the next couple years and should be able to capitalize on its "capital-intensive" growth strategy that takes the company through 2018.
Nordstrom surged in pre-market activity with this news, shooting up 10.02 percent to $67.65. Shares have continued to climb and were trading around $68.25 at last check.
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