Nordstrom Gets Analyst ‘Double’ Downgrade After Take-Private Deal: Retail Sentiment Slides

Luxury retailer Nordstrom Inc. ($JWN) stock was in the spotlight on Monday after the company received a ‘double downgrade’ from the brokerage Argus, dampening retail sentiment.

Argus analyst John Eade issued a “double downgrade” to Sell from Buy, The Fly.com reported, citing the analyst.

Argus reportedly does not see another bidder emerging to top the offer the Nordstrom family has made to take Nordstrom private. “As such, the firm suggests current shareholders should take profits from the recent run-up in the share price,” said the report.

Telsey Advisory also recently lowered the firm’s price target to $24 from $26 with a ‘Market Perform’ rating.

Retail sentiment on Stocktwits turned ‘bearish’ on Monday from ‘bullish’ a week ago. Message volumes fell to ‘normal’ zone.

Last week, Nordstrom struck an agreement with Erik, Pete, Jamie Nordstrom, other members of the Nordstrom family, and El Puerto de Liverpool, S.A.B. de C.V. to take the company private in a $6.25 billion deal.

The company’s shareholders are set to receive $24.25 in cash for each share of its common stock. The transaction represents a premium of approximately 42% on the company’s stock from March 18, 2024.

Nordstrom’s board also intends to pay a special dividend of up to $0.25 per share in cash upon closing.

Nordstrom shares are up 31.82% year to date.

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