JP Morgan Sees J.C. Penny Returning to Growth in Comps by July, Maintains Neutral, $18 Target

According to JP Morgan analyst Matthew Boss, J.C. Penny JCP could see third-quarter comparable-store sales grow in the mid-single digits range and fourth-quarter comps grow in the low-double digits range. Boss cited a strong revamp of JC Penney's home goods section, “meaningfully improved” traffic levels, and more “normalized” inventory levels ahead of heightened back-to-school demand as drivers for the estimates. The JP Morgan analyst also noted Dillard's DDS is not likely benefiting from the recent trouble JC Penney has been going through. Boss maintains a Neutral rating and $18 price target on shares of JC Penney. JCP spiked from $17.88 to $18.28 at noon following the note. Currently up 2.36% from the open to $18.18 at last check.