Deutsche Bank: Trend Line at J.C. Penney's Continues to Become Less Favorable
In a research report published today, Deutsche Bank recently visited a series of J.C. Penney Company (NYSE: JCP) stores, and found that the trend line in SSS at JCP becomes less favorable every month.
According to Deutsche Bank, “Specifically, we noticed that the new pricing message has yet to resonate as (1) traffic is weak, (2) commentary regarding missing coupons is overwhelmingly abundant, & (3) Best Price Friday generates the most interest. Of concern, we noticed that employees have received limited training on the strategy change and that morale is waning as payroll hours are cut. Bottom line, this change will take time to work; Hold.”
Deutsche Bank maintains its $40 PT on J.C. Penney, which closed yesterday at $37.63.
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