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Morgan Stanley Doubtful JC Penney 'Will Make Money Again'


Morgan Stanley gave J C Penney Company Inc (NYSE: JCP) credit for stabilizing the business in 2014, but said that it still expects shares of the company to shed more than 34 percent from Thursday's close of $9.12, to its price target of $6. The analysts reiterated an Underweight rating.

Investors seemingly agree with Morgan Stanley as the stock is down more than 11 percent at $8.18 shortly after Friday's open.

Looking to the future, Morgan Stanley cautioned that "operating improvement from here will be more difficult to come by." That thesis underscores the analysts' expectation that the company will be unprofitable until at least FY18. Even then, Morgan Stanley remained "doubtful" that JC Penney will "make money again."

By way of headwinds, Morgan Stanley noted that JC Penney will have to "deliver significant operational improvement" to reach its goal of $0 free cash flow. And that is improvement that the analysts at Morgan Stanley do not expect to happen.

Latest Ratings for JCP

Mar 2019MaintainsNeutralNeutral
Dec 2018Initiates Coverage OnUnderweight
Nov 2018DowngradesHoldSell

View More Analyst Ratings for JCP
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