UPDATE: Brean Capital Initiates Coverage on Nordstrom with Hold Rating on Prototype Retail Strategy

In a report published Tuesday, Brean Capital analyst Tom Forte initiated coverage on Nordstrom JWN with a Hold rating. In the report, Brean Capital noted, “We are initiating coverage on Nordstrom (JWN) with a Hold rating. Nordstrom is the 33rd-largest retailer in the US based on 2013 retail sales, according to the National Retail Federation (NRF). Its store portfolio spans 117 full-line Nordstrom stores, 151 Nordstrom Rack outlets, 2 Jeffrey boutiques, and one clearance store (as of September 2014). Its e-commerce portfolio includes Nordstrom.com, NordstromRack.com, flash sales site HauteLook.com and e-commerce services site Trunk Club. We believe the company operates the prototypical retail strategy of the future as it places the consumer at the center of the transaction and services him/her with its portfolio offline and online assets. We give Nordstrom a score of 86 out of 100 for our investment framework of the six key areas necessary to be successful in the future of retail (leveraging technology, logistics, payments, international expansion, mobile, and social). Potential catalysts for the stock include an acceleration in sales trends from its multi-channel efforts and an expedited share repurchase if the company succeeds in its efforts to find a financial partner for its credit card portfolio. In our view, its $72.61 share price adequately reflects our favorable opinion of Nordstrom and its business model and we are initiating coverage with a Hold rating. We would be comfortable recommending their purchase if there was a pullback.” Nordstrom closed on Tuesday at $72.54.