UPDATE: Oppenheimer Reiterates on J.C. Penney on Continued Progress

In a report published Wednesday, Oppenheimer analyst Brian Nagel reiterated a Perform rating on J.C. Penney Company JCP, and raised the price target from $7.00 to $8.00. In the report, Oppenheimer noted, “The Q3 (Oct.) results and Q4 (Jan.) guidance that JCPenney reported today suggest that a turnaround at the chain continues to take hold. Comps are improving albeit against easing comparisons. Clearance activity is moderating and turning less of a drag on margins. JCP is more aggressively controlling costs and preserving capital. We are optimistic that trends at the chain should continue to improve as JCP further pursues its ‘back to basics' strategy and distances itself from prior, very disruptive, repositioning efforts. JCP is, however, by no means out of the woods. Per our math, sales still need to improve meaningfully in order to take the risk of another capital raise off the table. Our rating on JCP is Perform.” J.C. Penney closed on Tuesday at $8.71.