UPDATE: BTIG Initiates Buy on JC Penney, Says Current Risk/Reward Profile is Attractive

BTIG analyst William Frohnhoefer published a report on JC Penney JCP that initiated a Buy rating with a price target of $22. In the report BTIG stated, "J.C. Penney (JCP) has suffered a number of operating reversals and negative headlines in recent quarters. While we expect continued volatility, we believe that the shares represent an option on the ultimate outcome of the firm's transformation, and that this option is accompanied by a number of levers which favor the equity investor. Given JCP's current situation, we step away from a traditional retail analysis of JCP and take a creditfocused view. In our opinion the current risk/reward profile is attractive." On Wednesday JC Penney closed at $15.65.