Wells Fargo Upgrades J. C. Penney (JCP) to Market Perform; Capital Raise Off Table
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Price: $0.18 --0%
Rating Summary:
1 Buy, 21 Hold, 11 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 4 | Down: 8 | New: 1
Rating Summary:
1 Buy, 21 Hold, 11 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 4 | Down: 8 | New: 1
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Wells Fargo upgraded J. C. Penney (NYSE: JCP) from Underperform to Market Perform with a price target of $6-$7(from $4-$5).
Analyst Paul Lejuez said, "JCP’s FQ4 was weak, but there was some good news. Investor fears of an imminent large capital raise or a change in corporate structure seems to be off the table in the near term. Mgmt took a more confident tone, giving decent F14 guidance that featured comp and GM improvement. FQ4 expense savings seem permanent and are expected to flow through to F14. In further discussions with mgmt, we learned there is no planned time frame to achieve FCF and the $400MM accordion feature is included in their range of ways they can achieve $2B in liquidity by year-end. While we can still argue that the stock may not present much value to equity holders, the company itself seems to be standing up better that many previously thought, which we believe warrants a Market Perform rating, as the stock is likely to move higher in the near term."
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.
Analyst Paul Lejuez said, "JCP’s FQ4 was weak, but there was some good news. Investor fears of an imminent large capital raise or a change in corporate structure seems to be off the table in the near term. Mgmt took a more confident tone, giving decent F14 guidance that featured comp and GM improvement. FQ4 expense savings seem permanent and are expected to flow through to F14. In further discussions with mgmt, we learned there is no planned time frame to achieve FCF and the $400MM accordion feature is included in their range of ways they can achieve $2B in liquidity by year-end. While we can still argue that the stock may not present much value to equity holders, the company itself seems to be standing up better that many previously thought, which we believe warrants a Market Perform rating, as the stock is likely to move higher in the near term."
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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