Nordstrom upgraded to 'Neutral'

New York City An analyst upgraded shares of Nordstrom on Monday amid a decline in the stock price and better margins.

Goldman Sachs analyst Adrianne Shapira upgraded the stock to "Neutral" and said shares have declined 18.9% compared with a 1.5% decline for the Standard & Poor's 500 since she downgraded the stock on May 18. Over the past year, shares have declined 38.8%, she added.

Shapira said the stock should no longer be rated "Sell," as its valuation is taking into account "a muted sales and margin recovery."

Shapira kept a "Buy" rating on fellow department store operator Macy's, expecting sales and margins to stabilize sooner. She also expects cost savings to boost earnings per share in the near term.