FBR Capital Adjusts Estimates on J. C. Penney (JCP); Stock Off Despite Beat and Modest Raise as Investors Decide It's Not Enough
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Price: $18.01 -4.15%
Rating Summary:
4 Buy, 14 Hold, 6 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
Rating Summary:
4 Buy, 14 Hold, 6 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
Trade JCP Now!
FBR Capital maintains a 'Market Perform' on J. C. Penney (NYSE: JCP), PT $35.
FBR analyst says, "We believe the stock is expensive given middle of the road performance and somewhat mediocre expense savings. If the company delivers on its 5% comp goal per year through 2014, the stock will likely work quite well. But we continue to view that as aggressive and the 1Q comp performance supports that view. Our sense is that investors were initially pleased with the guidance and the reiteration of long-term earnings goals. Additionally, cost savings initiatives should benefit the company by $100 million–$110 million over the next three years. However, we sense some frustration with lowered long-term sales goals. Furthermore, our sense is some analysts and investors were looking for a bigger increase to guidance. With the stock trading at a modest premium to peers, we think the bar is high."
"We are revising our 2Q11 EPS estimate to $0.26 from $0.16. CY11 EPS is now $2.34. We are also revising our CY12 EPS estimate to $2.84 from $2.32."
For more ratings news on J. C. Penney click here and for the rating history of J. C. Penney click here.
Shares of J. C. Penney closed at $38.44 yesterday, with a 52 week range of $19.42-$39.73.
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FBR analyst says, "We believe the stock is expensive given middle of the road performance and somewhat mediocre expense savings. If the company delivers on its 5% comp goal per year through 2014, the stock will likely work quite well. But we continue to view that as aggressive and the 1Q comp performance supports that view. Our sense is that investors were initially pleased with the guidance and the reiteration of long-term earnings goals. Additionally, cost savings initiatives should benefit the company by $100 million–$110 million over the next three years. However, we sense some frustration with lowered long-term sales goals. Furthermore, our sense is some analysts and investors were looking for a bigger increase to guidance. With the stock trading at a modest premium to peers, we think the bar is high."
"We are revising our 2Q11 EPS estimate to $0.26 from $0.16. CY11 EPS is now $2.34. We are also revising our CY12 EPS estimate to $2.84 from $2.32."
For more ratings news on J. C. Penney click here and for the rating history of J. C. Penney click here.
Shares of J. C. Penney closed at $38.44 yesterday, with a 52 week range of $19.42-$39.73.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
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