An analysis by Bank of America (BofA) showed that Australian retailer David Jones would be a good buy for now following the drop in company shares at its lowest level since the global financial crisis.

In the last 12 months, shares in the high-end department store plummeted by about 50 per cent to $2.20 per stock on Friday. It is the lowest level since March 2009 and only 1.4 times the value of the retailer's assets minus its liabilities. On Monday, the company shares slightly improved to $2.23.

As a result, the market value of David Jones is placed at $1.2 billion while its real estate holdings could raise up to another $1 billion if sold and leased back, BofA estimated.

Aberdeen Asset Management head of equities Robert Penaloza told The Herald Sun that David Jones has tangible assets that investors can hold on, it has a decent brand name and its market position is still valid.

However, analysts have cautioned the would-be buyer to avoid running David Jones from its present locations because Melbourne is the eighth most expensive city for retail rent, even more expensive than Milan, Frankfurt and Chicago, while Sydney is the third most expensive after New York and Hong Kong.

David Jones has four major outlets on Bourke Street Mall in Melbourne and central Sydney. It is an icon in retailing in Australia since David Jones is the country's oldest department stores founded in 1838. It was named after a Welsh immigrant, who opened a store in Sydney to offer the best and most exclusive products,

David Jones' revenue peaked in July 2008 at A$2.1 billion. For the current fiscal year, the retailer's revenue dipped 10 per cent to A$1.9 billion, according to Bloomberg.

Commonwealth Bank analyst Andrew McLennan said the buyer should lower prices, invest in technology and expand its online business for the store to survive and thrive amid Australia's weak retail market.

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