- Gordon Haskett's Chuck Grom weighs in on the go-private developments with Nordstrom (JWN +8.9%).
- "With one of the best brands and models in retail (despite the recent turbulence in comp trends) – we have to think that today’s news could attract other potential bidders in the coming weeks," notes the analyst.
- "While we are purely speculating, Hudson Bay (OTC:HBAYF) comes to mind as a potential suitor given the high-end roll-up its pursued in recent years (i.e. Lord & Taylor, Saks, etc.) and/or other retail-focused private equity firms (KKR, Sycamore, Leonard Green)," he adds.
- Grom's kicker: "As a reminder, over the past 10+ years, retail takeout transactions have fetched approximately 9.4x trailing 12-month EBITDA, which would imply a takeout price close to $70 – substantially higher than current levels."
- Shares of JWN are up 8.82% to $44.05 and traded as high as $47.90 earlier.
- Now read: There's Blood In The Mall Parking Lot (Part 1)
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