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Mark Hake Of Capital Management Sees Bright Future For JC Penney

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Speaking on CNBC, on Thursday, Mark Hake Of Capital Management said that JC Penney Company (NYSE: JCP) is a great turn around story.

Hake thinks that buying JC Penney is the best way to make money in the retail sector right now. If it continues to pull sales in, like it seems to be doing from Macy's and other places, the stock is going to have a huge potential.

Mark Hake said that this is an operating leverage story and just a slight increase in sales would massively increase both margins and cash flow.

The typical retail stock is trading for 12 times free cash flow and Hake estimates that JC Penney's free cash flows at $200 to $300 million, within a year or so. That is at least $11.80 stock or maybe even much higher, thinks Hake. He added that in the most bullish scenario, the stock should be worth $18.

JC Penney Company gained 4.17 percent in the regular trading and it added additional 3.59 percent in the after hours, trading at $10.10.

Latest Ratings for JCP

DateFirmActionFromTo
Dec 2014Goldman SachsDowngradesNeutralSell
Nov 2014Morgan StanleyReiteratesUnderweight
Nov 2014JP MorganMaintainsNeutral

View More Analyst Ratings for JCP
View the Latest Analyst Ratings

Posted-In: Mark HakeAnalyst Color CNBC Long Ideas Analyst Ratings Media Trading Ideas

 

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