UPDATE: Nomura Cuts PT to $18 on JC Penney on Liquidity Concerns
Nomura maintained JC Penney (NYSE: JCP) at Neutral but lowered its price target from $26 to $18.
Nomura noted, "Despite weak financial results, JCP is moving forward with its transformational strategy, albeit with some mid-course corrections. The hope is that as more shops are constructed, the company will gain more traction with customers. Based on our current estimates, which forecast a loss of $370MM in the first three qtrs of F13, JCP may need to draw on its revolver during the peak borrowing period (3Q). Although the company has plenty of capacity ($1.5BN), the need to borrow would not be a good signal to the market."
JC Penney closed at $17.97 on Monday.
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