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One Lone Department Stores Rated ‘Buy’ at UBS
11 Apr 2012 EDT - CNBC.com
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UBS has a ‘Buy’ rating on only one department store. Know which it is?According to analyst Michael Binetti the best stock in the space right now -- and therefore a 'Buy' -- is Nordstrom.Binetti has crunched the numbers, examined the trends and believes Nordy’s, as it’s affectionately called, will see strong growth throughout 2012 due to recently increased loyalty program incentives, rising customer satisfaction ratings and historically outperforming when the economy is improving.

Plus, their client base is more likely to open their wallets. “High end consumers always have a greater propensity to spend.

And he also thinks history bodes favorably for Nordstrom.“During 2003-2007 Nordstrom outperformed most other department stores. We think this is a similar economy where people start to feel better about their budgets – and people will trade up to Nordstrom.”

Binetti initiated Nordstrom with a $63 price target. By contrast Binetti started coverage of rivals Saks, Macy's, Kohl's, and J.C. Penney with "Neutral" ratings.

Of those mentioned above, Binetti said that Saks is one of the retailers with the most potential for its 2012 revenue at stores open at least a year, explaining that as the economy gets better it will create new aspirational customers. He gave Saks a $12 price target.

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