J.C. Penney's (JCP) Buy Rating Maintained at Deutsche Bank
- Wall Street surges to new highs; transports set record
- lululemon athletica (LULU) Tops Q3 EPS by 4c; Adj.-Comps Outpaced Views
- Abbott (ABT) Files Complaint to Terminate Alere (ALR) Acquisition
- Costco Wholesale (COST) Tops Q1 EPS by 5c; Comps Up 1%, 2% Ex-Gas
- After-Hours Stock Movers 12/07: (VYGR) (LULU) (HRB( Higher; (OHRP) (VRNT) (CMTL) Lower (more...)
Get inside Wall Street with StreetInsider Premium. Claim your 2-week free trial here.
Deutsche Bank maintained a Buy rating on J. C. Penney (NYSE: JCP) with a price target of $12. Comments follow the release of Q2 results. Analyst Paul Trussell said results show continued relative outperformance.
"JCP’s 2Q results showcase its continued outperformance vs. the peer group and unique position to drive accelerating trends (opposed to banking on easing comparisons and better weather). JCP was the only dept. store with positive comps in 2Q, is the only dept. store to maintain FY guidance provided at the beginning of the year, and is the only dept. store with a clear strategy to grow its non-apparel categories in a meaningful way and become a market share taker in the process. We acknowledge that the bar for 2Q comps was raised yesterday and JCP didn’t surpass it, and we also acknowledge that 2H acceleration to MSD comps seems difficult to achieve (we are modeling only ~3% SSS in 2H), but we continue to be impressed with the overall pace of the turnaround which now includes appliances in 500+ stores (the majority in malls with Sears), a strong offering from Ashley Furniture, a growing Sephora presence (which is adding Clinique products), center core refreshes, plus size boutiques, expanded active-wear offering of private brand Xersion and from Nike in girls, BOPIS, an improved loyalty program, and importantly a refinancing of the company’s debt with extended maturities. We are confident in our EBITDA estimates and expect JCP’s performance gap vs. other mall-based apparel retailers to be maintained. Buy," said the analyst.
Shares of J. C. Penney closed at $9.94 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Deutsche Bank Downgrades MGM Growth Properties (MGP) to Hold
- Wedbush Raises Price Target on Francesca's (FRAN) Following 3Q Report
- Oppenheimer Assumes Mallinckrodt plc (MNK) at Outperform
Create E-mail Alert Related CategoriesAnalyst Comments
Related EntitiesDeutsche Bank
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!