JP Morgan Sees J.C. Penny Returning to Growth in Comps by July, Maintains Neutral, $18 Target

According to JP Morgan analyst Matthew Boss, J.C. Penny (NYSE: JCP) could see third-quarter comparable-store sales grow in the mid-single digits range and fourth-quarter comps grow in the low-double digits range.

Boss cited a strong revamp of JC Penney's home goods section, “meaningfully improved” traffic levels, and more “normalized” inventory levels ahead of heightened back-to-school demand as drivers for the estimates.

The JP Morgan analyst also noted Dillard's (NYSE: DDS) is not likely benefiting from the recent trouble JC Penney has been going through.

Boss maintains a Neutral rating and $18 price target on shares of JC Penney.

JCP spiked from $17.88 to $18.28 at noon following the note. Currently up 2.36% from the open to $18.18 at last check.