UPDATE: JP Morgan Downgrades JC Penney to Neutral on Fundamental Outlook
JP Morgan reduced its rating on JC Penney (NYSE: JCP) from Overweight to Neutral and cut its price target from $30 to $20.
JP Morgan noted, "We are downgrading JCPenney to Neutral from Overweight based on (1) more questions than answers on the long-term pricing/promotional structure (incentives, NOW Pricing, MSRP), (2) balance sheet composition increasingly unclear (WC vs. non-core asset sale drivers), and (3) lack of earnings support for potentially another year (JPM modeling $0.00 EPS in FY13 w/ risk if sales do not materialize)."
JC Penney closed at $17.40 on Tuesday.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.