Market Overview

Sozzi: 'Say Hello To The New CEO Of Your Mom's J.C. Penney'

Related JCP
40 Biggest Movers From Yesterday
Sears' Post-Earnings Move Shows Why Sentiment Can Matter More Than Earnings
Why I Love This Hated 15.3% Yielder (Seeking Alpha)

Brian Sozzi of Belus Capital Advisors commented on J C Penney Company Inc's (NYSE: JCP) appointment of Marvin Ellison as the company's next CEO.

Ellison, who currently serves as Home Depot's Executive Vice President of stores, will replace outgoing CEO Mike Ullman.

Sozzi attended J C Penney's recent analyst presentation and commented in a note to clients on Monday that Ullman "dropped the ball" by not updating the market on a succession plan and that the company could have saved a "great deal" of investor headache by offering the Street a timetable on a new CEO announcement.

Sozzi suggests the announcement indicates that the "CEO search was nearing completion."

"Having had coverage on Home Depot for eight years, we can tell you that Ellison is very strong operationally," Sozzi wrote.

Ellison's accomplishments at Home Depot include expanding its appliance section, improving customer service and introducing a ship from store, buy online pick up in store concepts. According to Sozzi, Ellison's operational background "is needed" as J C Penney's operational execution is "critical" at this point.

Sozzi shrugs off concern that Ellison isn't an "apparel guy" and notes that "the market is right in sending the stock higher."

Shares of the retailer traded recently at $7.31, up 2.6 percent.

Latest Ratings for JCP

Oct 2017CitigroupMaintainsSell
Oct 2017BMO CapitalMaintainsMarket Perform
Oct 2017B. RileyMaintainsNeutral

View More Analyst Ratings for JCP
View the Latest Analyst Ratings

Posted-In: Brian Sozzi J.C. Penney Marvin Ellison Mike UllmanAnalyst Color News Analyst Ratings


Related Articles (HD + JCP)

View Comments and Join the Discussion!