Analyst: JC Penney Shares Look Pricey Relative To Peers

high debt and narrow margins relative to a couple of peers suggests its shares are over-valued, an analyst said Wednesday. Imperial Capital's Mary Rose Gilbert maintained an Underperform rating an $3 target on JC Penney a day after the company inadvertently disclosed that same-store sales in the quarter to date are up 6 percent. The retailer is forecasting same-store sales growth for the first quarter of between 3.5 percent and 4 percent. Gilbert boosted her comps forecast for the period to 3.5 percent, from 2.5 percent Wednesday and said her research suggests the company is seeing "good traffic flow" and improved results from women's handbags, shoes and accessories. But JC Penney's stock price relative to its predicted 2016 results is notably higher than

and

, Gilbert said. In addition to Penney's relatively higher debt and lower predicted margins in comparison with the two peers, Gilbert noted that Penney owns only 26 percent of its stores, versus 55 percent and 83 percent for Macy's and Dillard's, respectively. Gilbert on Wednesday also maintained Buy ratings on Penney senior notes that reach maturity between 2020 and 2097, along with Hold ratings on Penney senior notes maturing between 2016 and 2019. JC Penney shares were down 1.4 percent at $9.02.