Morgan Stanley Remains On the Sidelines Following Nordstrom's Q4 Report

Morgan Stanley released a note following Nordstrom's

. Analyst Kimberly Greenberger rates the stock Equalweight. Greenberger feels “until the heightened investment cycle passes, 10%+ EPS growth likely remains elusive unless comps accelerate meaningfully.” CapEx spending of $3.9 billion for 2014-2018 reflects “aggressive online and store growth targets,” said Greenberger. Nordstrom's Rack and eCommerce accounts for 38 percent of sales, with that figure expected to increase to 50% over the next several years according to Greenberg. “Rack expansion will also bring additional occupancy cost and management anticipate EBIT margin contraction over the next several years," the Morgan Stanley analyst said. Shares are trading down to 58.35, 1.8 percent lower from Thursday's close.