JCP Well-Positioned To Deliver Strong Results In 2H10
Analyst Deborah L Weinswig of Citigroup maintains her "buy" rating on JC Penney Co (NYSE: JCP), while raising her estimates for the company. The target price for JCP has been raised from $43 to $45.
According to Citigroup, “JCP is well-positioned to deliver strong results in 2H10, driven by: 1) tailwinds from product cost deflation, which are greater than we previously expected; 2) the introductions of exclusives LIZ and MNG by Mango in the Fall; 3) benefits from the rollout of Sephora to 75 additional stores TY; and 4) opportunity for a turnaround in home.”
Citigroup mentions that “We were encouraged by JCP’s better-than-expected Feb. SSS and expect traffic (which turned positive for the first time since June ‘08) to cont. to improve, esp. in 2H, driven by the aforementioned catalysts.”
Citi has raised its EPS estimates for 2011 and 2012 from $1.57 to $1.65 and from $2.00 to $2.11, respectively.
