J. C. Penney (JCP) PT Lifted at Piper Jaffray Amid 'Strong' Q1; Traffic Positive In April For 1st Time In 30 Months

Piper Jaffray analyst Neely J.N. Tamminga reiterated an Overweight rating and boosted her price target on J. C. Penney (NYSE: JCP) to $12.00 (from $11.00) following 'strong' Q1 top-line growth of 6.2% in comparable-store sales. The analyst believes the company's turnaround is very much underway and management's indication that traffic was positive in April for the first time in 30 months.

Tamminga believes the following key initiatives are likely to drive market share gains in 2014 and beyond resulting in positive +5%-6% sales growth and positive FCF and EBITDA. These key initiatives include: 1) continued improvements in conversion rates; 2) home being open for business (versus being "dark" last year); 3) reduction in clearance activity; 4) restoration of private brands; and 5) reinstated commission-based structure for sales associates in key categories.

The firm adjusted FY 2015 EPS from ($2.29) to ($2.26) and FY 2016 EPS from ($1.45) to ($1.35).

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 $8.37 yesterday.

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