JC Penney May Still Disappoint Optimists
J C Penney Co Inc (NYSE: JCP) may still fall short of expectations despite same-store sales growth of 6 percent in the quarter to date, an analyst said Tuesday.
The company said it inadvertently disclosed the sales figure Monday in an e-mail to an analyst.
Deutsche Bank's Paul Trussell said despite the higher-than-expected figure, the company may "still fall short of what we view as lofty investor expectations."
Trussell said at least some investors are looking for same-store sales growth in the "mid single digits" for the first quarter.
Adjusting for Easter falling in March this year, the company on Monday forecast same-store sales growth for the period of between 3.5 percent and 4.5 percent.
Trussell increased his estimate of comparable sales for the first quarter to 4 percent, from 3 percent, but maintained a Hold rating and $9 target on the company.
Although the company has forecast 2017 operating income of $1.2 billion, Trussell is skeptical and has penciled in an estimate that is 13 percent lower.
The company "remains a 'show me' story" until more confidence is gained in its long-range forecasts and ability to post consistent growth, Trussell said.
JC Penney changed hands recently at $9.18, down $0.23 or 2.4 percent.
Latest Ratings for JCP
|Feb 2017||B. Riley||Downgrades||Buy||Neutral|
|Feb 2017||Morgan Stanley||Upgrades||Underweight||Equal-Weight|
|Feb 2017||Susquehanna||Initiates Coverage On||Positive|
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