Nomura Securities Starts J. C. Penney (JCP) at Reduce, $5 PT

February 13, 2014 7:55 AM EST
Get Alerts JCP Hot Sheet
Price: $6.76 --0%

Rating Summary:
    12 Buy, 15 Hold, 7 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 0 | Down: 0 | New: 0
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Nomura Securities initiates coverage on J. C. Penney (NYSE: JCP) with a Reduce. PT $5.00.

Analyst Robert Drbul weighs in: "With a loss of nearly $5bn in sales in 2012 and 2013, we believe a sales and market share recovery will take much longer than many may anticipate. The J.C. Penney customer has migrated to other department stores and off-price retailers, and these shifts could be difficult to restore. While it has posted negative comps for the first three quarters of the 2013, it has shown some sequential improvement; however, our estimated 2% gain in 4Q13 is up against a decline in 4Q12 and trends on a two-year basis remain pressured. We are estimating losses of $6.00 in 2013E and expect the company to generate an earnings loss again in 2014E of $3.00. 2013E / 2014E Revenues: $12,039mn / $11,900mn vs. Street at $11,939mn / $12,506mn. FY13E EPS at $($6.00); FY14E EPS at ($3.00)."

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 $5.96 yesterday.

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