JP Morgan Maintains Overweight Rating on JC Penney

A report from J.P. Morgan reiterates its Overweight rating on JC Penney JCP. The report states, "[M]anagement set its initial 4Q guidance ($1.05-$1.15) in-line with our $1.10 estimate ($1.15 Street at high-end) a range we view as achievable (SG&A assumption of down slightly likely conservative), and prudent particularly to re-establish investor credibility near-term. Looking ahead, we believe the setup remains favorable for shares with low expectations near-term, a reasonable 4Q bar (SG&A opportunity not in numbers), and changes to come from new management in place over time.” JCP closed Friday at $33.92.