Brian Sozzi, Retail Guru, Changing His Tune On J.C. Penney
On Tuesday, retail guru Brian Sozzi shared his thoughts on J.C. Penney (NYSE: JCP). Sozzi has been a J.C. Penney bear for a long time, even doubting the company following fourth quarter results, but he seems to be switching sides.
In a video posted to The Street, Sozzi admits he has become “more positive on the stock after a weekend of soul-searching and store walking.” He goes on to list why investors have rushed to buy shares:
- Magnitude of markdowns by department has leveled off.
- Company offering 40-60 percent off deals instead of 70-80 percent off.
- Growing perception that the company will turn nicely profitable by holiday season this year.
- Possibly because of stronger sales trends and 2+ years of cost cutting.
- Receding risk JCP will need to raise additional capital.
- Could lead to forming of new long-term shareholder base.
In addition to Sozzi's bullish comments, traders in J.C. Penney are also responding to an upgrade from this morning. Citigroup upgraded the stock from Neutral to Buy and raised the price target from $7.50 to $11.
Shares of J.C. Penney are up 4.75 percent to $8.82 during Tuesday's session. Shares are up 48 percent since February 3.
Latest Ratings for JCP
|Jan 2016||Credit Suisse||Upgrades||Underperform||Neutral|
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.