Zacks Analyst Blog Highlights: Nordstrom, Lan Airlines and Investment Technology Group.

CHICAGO -- Zacks.com announces the list of stocks featured in the Analyst Blog. Every day - besides main national holidays - the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Nordstrom (NYSE: JWN), Lan Airlines S.A. (NYSE: LFL) and Investment Technology Group (NYSE: ITG).

See the latest posts to the Analyst Blog by visiting: http://at.zacks.com/?id=2673

Here are highlights from Wednesday's Analyst Blog:

Nordstrom at Fair Value

Nordstrom's (NYSE: JWN) third-quarter results were better than expected. We are increasing our fiscal 2006 EPS estimate by $0.06 and our 2007 EPS estimate by $0.02. Still, we maintain our Hold rating on JWN shares because we think company's positive factors (smart merchandising efforts and operating improvements) are already baked in to its stock price.

The stock is trading at 17x our fiscal year 2007 EPS estimate, which we view as reasonable. Our target price of $50 assumes JWN shares will perform in-line with the S&P 500 for the next six months.

A Buy on Lan Airlines

We are keeping our Buy recommendation on Lan Airlines S.A. (NYSE: LFL). The company's third quarter 2006 results were positive, as was October traffic. The outlook for future quarters looks even better, due to the positive economic outlook for Latin America, continued falling international oil prices, continued strength in most Latin American currencies, and the successful implementation of several cost reduction initiatives.

Moreover, the start of an interesting project to redesign its domestic and regional business model should lead to better results. All considered, we believe the stock's valuation represents a buying opportunity. We believe the stock should trade with a 2007 P/E around 17x, between the industry mean and median, which yields a target price of US$56.50.

Excellent ITG Entry Point

We are upgrading Investment Technology Group (NYSE: ITG) to a Buy at this time. Valuation is the key to our upgrade. Current pricing now looks quite attractive on a PEG basis. ITG's PEG ratio is now 1.01 (vs. 1.33 in late August). Our price target is falling to $45, but still equates to a 15% total return over six months.

In our view, the market overreacted to Q3 earnings and the October trading data, offering us an opportunity to get into the shares at an attractive valuation. Q3 EPS was $0.03 above our estimate and up 35.5% year-on-year. However, EPS only matched consensus, for the first time in a while, and y-o-y EPS growth was the slowest since Q3-05. October trading data was soft, but remained well above our LTGR and the consensus (both of which are up since August).

See the latest posts to the Analyst Blog by visiting http://at.zacks.com/?id=2645

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

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