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JC Penney May Still Disappoint Optimists

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JC Penney May Still Disappoint Optimists
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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

DateFirmActionFromTo
Feb 2017B. RileyDowngradesBuyNeutral
Feb 2017Morgan StanleyUpgradesUnderweightEqual-Weight
Feb 2017SusquehannaInitiates Coverage OnPositive

View More Analyst Ratings for JCP
View the Latest Analyst Ratings

Posted-In: Deutsche Bank Paul TrussellAnalyst Color Reiteration Analyst Ratings Best of Benzinga

 

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