Oppenheimer Says JCPenny (JCP) Turnround Taking Shape

October 12, 2012 1:14 PM EDT
Get Alerts JCP Hot Sheet
Price: $6.94 +2.66%

Rating Summary:
    12 Buy, 15 Hold, 7 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 35 | Down: 31 | New: 11
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Recently JCPenney (NYSE: JCP) CEO Ron Johnson surprised Wall Street when he announced he was distributing $10 gift cards. Given Johnson's new everyday low price strategy, some investors were confused by the announcement. Others were disappointed.

"In our view, behind lots of noise, the JCP turnaround is taking shape," said analyst Brian Nagel of Oppenheimer.

"We take the company's decision to entice its customers back with a one-off price promotion as an indication that Mr. Johnson is increasingly nimble in his strategy and views the chain's recent store enhancement as now worthy of better customer traffic," added Nagel.

Nagle views early result from the company's shop-in-shop concept as encouraging, though he does not believe the company is well positioned for the holiday season.

Oppenheimer has an Outperform rating on J. C. Penney (NYSE: JCP) with a price target of $30.00.

For an analyst ratings summary and ratings history on J. C. Penney click here. For more ratings news on J. C. Penney click here.

Shares of J. C. Penney closed at $26.18 yesterday.

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