Market Overview

UPDATE: Citigroup Upgrades J.C. Penney

Share:
Related JCP
The Holiday Season Has Been Kind To Discount Retailers, Not So Much Toward Department Stores
PreMarket Prep Is LIVE!
The Vetr community has downgraded $JCP to 3.5-Stars (Vetr)

In a note released Tuesday, Citigroup analyst Oliver Chen Upgraded J.C. Penney Co. (NYSE: JCP) from Neutral to Buy and raised the price target from $7.50 to $11.

Chen attributes his positive view of J.C. Penney to the company "going back to the basics." Chen believes this move will lead the company to meet fiscal year 2014 guidance and deliver positive comp store sales.

Describing this move Chen stated, "In our view, JCP is not taking substantial fashion risk but just going back to what worked before & marketing to drive prudent traffic." Chen continued by outlining three key factors he feels will drive comp store sales and "healthier margins": 1) a revamped home department 2) fixing the kids department 3) fixing the mix of private, exclusive, and national brand merchandise.

Chen concluded by addressing the issue of liquidity, "Investor fears remain on JCP's liquidity position which we believe are overdone."

At last check J.C Penney was trading up ~5.5 percent at $8.88.

Latest Ratings for JCP

DateFirmActionFromTo
Dec 2016Bank of AmericaUpgradesNeutralBuy
Sep 2016GuggenheimInitiates Coverage onNeutral
Aug 2016Morgan StanleyMaintainsUnderweight

View More Analyst Ratings for JCP
View the Latest Analyst Ratings

Posted-In: Citigroup Oliver ChenAnalyst Color News Upgrades Price Target Analyst Ratings

 

Related Articles (JCP)

View Comments and Join the Discussion!