Deutsche Bank Cuts Price Target and EPS Estimates on J. C. Penney (JCP); There's Only Two Ways This Can Go

May 23, 2012 12:18 PM EDT
Get Alerts JCP Hot Sheet
Price: $6.85 +2.39%

Rating Summary:
    12 Buy, 14 Hold, 8 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 30 | Down: 30 | New: 23
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Deutsche Bank maintains a 'Hold' on J. C. Penney (NYSE: JCP) price target chopped from $38 to $26.

Analyst, Charles Grom, said, "While tempted to catch the falling knife, we're staying sidelined on JCP after doing our own autopsy on 1Q results. While we have a lot of respect for CEO Ron Johnson, we think it's plausible that SSS trends get worse before they get better (BTS/X-Mas; e.g. > promotional periods) putting our GAAP EPS of $0.85 at risk. Further, history has taught us (via Wal-Mart (NYSE: WMT) / Talbots (NYSE: TLB)) that changing consumers' perception of what a 'store' signifies is very difficult to do . . . if not impossible. With all this in mind, we'll wait for (1) the next shoe to drop or (2) clear signs that the turnaround is on firm ground before getting involved."

FY12 EPS cut from $1.58 to $0.85 (or $1.56 ex-pension expense)

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 $26.46 yesterday.

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There's Only Two Ways This Can Go
dbear on 2012-05-23 12:47:19
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"There are Only Two Ways This Can Go" or if you have to "There're Only Two Ways This Can Go"

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