Market Overview

J.P. Morgan Says Holiday Update Bodes Well for J.C. Penney

Related JCP
Credit Suisse: J C Penney Company Inc Stock Offer May Be 'On Horizon'
Imperial Capital Bearish On J C Penney Company Inc Shares
Ever Wonder Why Ron Johnson Left Apple for J.C. Penney? (Fox Business)

In a report published Wednesday, J.P. Morgan analyst Matthew R. Boss reiterated a Neutral rating on J.C. Penney (NYSE: JCP).

In the report, J.P. Morgan noted, “JCP provided a holiday update after the close reporting November same-store-sales of +10.1% - its best comp in 5 years (& sequential 2-year stacked acceleration). 3 Key Takes From the Release & Follow-up w Mgmt: (1) Traffic was positive over both the Black Friday weekend as well as Biggest Sale of Them All (11/6-11/11) with the cadence of the month more/less consistent, (2) Brick & Mortar comps improved ~1,000bps on our math with E-commerce consistent sequentially (+HSD in Nov vs -LSD in Oct), and (3) Category-specific: outerwear, accessories, boots and home decor (small electrics, pillows, sheets, towels) were standouts with the return of Cooks private brand (entry price points) well received over BF weekend. Importantly, November closes our outlined near-term catalyst trio (Oct SSS, 3Q EPS release, Nov SSS) included in our 'Santa's Rally' trading call” (published 11/4) and while the market has now digested a sense of stability (JCP +36% vs. SPX + 2.8% in Nov), the turnaround road remains steep (4Q heavily front-end loaded) with ‘a highly competitive environment' (cited in tonight's release) and continued constraints (home inventory/exclusive brands) pressuring margins ahead.”

J.C. Penney closed on Tuesday at $10.11.

Latest Ratings for JCP

Sep 2014Imperial CapitalMaintainsUnderperform
Aug 2014BTIG ResearchDowngradesBuyNeutral
Aug 2014Craig-HallumUpgradesSellHold

View More Analyst Ratings for JCP
View the Latest Analyst Ratings

Posted-In: J.P. Morgan Matthew R. BossAnalyst Color Reiteration Analyst Ratings


Related Articles (JCP)

Around the Web, We're Loving...

Partner Network

Get Benzinga's Newsletters