In a Friday note to clients, Evercore said: "We believe department stores have been over allocating capital and resources to support aggressive digital and off-price strategies for years, moving the industry away from its core competencies and advantages into new competitive situations that are unwinnable."
"And in our view, Nordstrom is the most guilty of putting itself in a precarious situation by distancing itself from its long-standing, carefully cultivated identity (full-price, customer service, unique fashion curation) to pursue commoditizing e-commerce and off-price strategies."
Evercore cut its price target on Nordstrom to $40 from $50.
Nordstrom did not immediately respond to CNBC's request for comment.
The analysts also cut their full-year earnings per share estimates for the next three years.
Nordstrom's stock has gained about 3 percent in 2016, but has fallen nearly 25 percent over the least six months.