Market Overview

Piper Jaffray Comments On JC Penney's 'Good News' And 'Not So Good News'

Piper Jaffray Comments On JC Penney's 'Good News' And 'Not So Good News'
Related JCP
Study: Top Retailers Will Lose $5.4 Billion In Mobile Revenue This Holiday Season
How The Department Store Giants Have Fared In The Amazon Age
Go Long J.C. Penney As Sears Holdings Prepares To Declare Another Awful Earnings Quarter (Seeking Alpha)

In a report published Monday, Piper Jaffray analyst Neely J.N. Tamminga commented that a recent survey exploring women's shopping behavior and intentions showed that J C Penney Company Inc (NYSE: JCP) has improved its overall rank as a preferred shopping destination for fashion from number four this past fall to number three.

Tamminga noted both "good news" and "not-so-good news" were found in the survey.

The "good news" was that the percentage of women indicating that JC Penney is "no longer a brand/store" is weakening, marking a "positive sign of progress" as JC Penney strives to reclaim market share.

On the other hand, the "not-so-good news" was that only 78 percent of respondents who indicated they had shopped at JC Penney in the past six months intend to purchase from the store again in the next three months. The analyst stated that while this figure is high, the repurchase intention is lower than the 87 percent indicated in a similar survey six months ago.

Estimate Changes

Tamminga lowered her comp estimates to +1 percent from a previous 4 percent for the first quarter, citing continued weather hassles, a broader pause among consumers to spend at the mall and overall lower traffic trends to malls.

However, the analyst stated that the next three weeks of sales could be "significant" and possibly a "game changer" as temperatures begin to warm and shoppers think about spring trends.

Shares remain Overweight rated with a price target lowered to $13 from a previous $14.

Latest Ratings for JCP

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

View More Analyst Ratings for JCP
View the Latest Analyst Ratings

Posted-In: fashion Neely Tamminga PiperJaffray retailersAnalyst Color Price Target Analyst Ratings Best of Benzinga


Related Articles (JCP)

View Comments and Join the Discussion!