UPDATE: Morgan Stanley Reiterates Underweight Rating, Lowers PT on J.C. Penney Company as Flat Comps Lower Revenue Recovery Trajectory

In a report published Thursday, Morgan Stanley analyst Kimberly C. Greenberger reiterated an Underweight rating on J.C. Penney Company JCP, but lowered the price target from $7.50 to $5.50. In the report, Morgan Stanley noted, “While there were a few positive surprises, JCP's 3Q results highlighted how difficult it is to recover both sales and GM in this environment. Flat comps against negative MSD y/y comparisons leave us less confident in our revenue forecasts. Lower PTto $5.50 and reiterate UW.” J.C. Penney Company closed on Wednesday at $7.76.