Surprised? J.C. Penney Hits Number 2 In Fashion

In a report published Monday, Piper Jaffray analyst Neely Tamminga reiterated an Overweight rating and $17 price target on shares of J.C. Penney while reaffirming the stock as "one of our two top picks for 2015." Tamminga's Outperform rating was maintained following a proprietary survey exploring women's shopping behavior and intention. According to the survey's results, J.C. Penney now ranks as the second most preferred shopping destination for fashion, marking an improvement from its number four spot the company held a year ago. Tamminga's survey also asked shoppers to name a store (or brand) from which they are starting to buy from. J.C. Penney ranked fourth highest, marking its best ranking in five years. Moreover, the survey concluded that shoppers who purchased from J.C. Penney in the past six months are "more inclined" to revisit the store for additional purchases in the next three months. "Just in the past few weeks, we are observing new product launches of exclusive or private brands at J.C. Penney including Michael Strahan's line of men's suiting as well as a new millennial-focused casual line of clothes called Belle + Sky," Tamminga concluded. "These are recent examples of the company's drive to continually innovate and stay relevant for their customer."