UBS Downgrades J C Penny Company Amid Merchandise Concerns

UBS downgraded J C Penny Company Inc. JCP from Neutral to Sell and lowered the price target from $10 to $5 on Monday.

Analyst Michael Binetti was concerned that the company demonstrated a lack of “merchandise newness” at the October 8 analyst day.

The stock has fallen 23.27 percent since October 8.

The firm reduced its 3 year (FY 2015 to FY 2017) comparable store estimate to +4 percent per year from +5 percent which was below the J C Penny Company estimate of +5.4 percent Compounded Annual Growth Rate for 3-year same-store-sales.

J C Penny Company Inc closed at $7.12 on Friday.