Piper Jaffray Defends JCPenney (JCP) as Shares Down Nearly 17%

Article Stock Quotes (1) Comments (0)

Amid a nearly 17 percent plunge in shares of JCPenney (NYSE: JCP) on the heels of worse-than-expected Q1 results Tuesday afternoon, Piper Jaffray's Jeffrey Klinefelter is defending the company and stock Wednesday morning.

The analyst cited several factors for his reiterated Overweight rating:

• a promising bunch of new brands coming, and
  
• accelerated cost reduction plans -- JCPenney noted $900 million in planned expense cuts which will be realized by the end of this year.

Klinefelter said JCPenney reporting $5 per share by FY16 remains intact.

The analyst revised the following estimates:

• reduced Q2 from a gain of 4 cents per share to a loss of 9 cents per share;
  
• raised Q3 EPS from 51 cents to 53 cents, and
  
• raised Q4 from $1.55 to $1.91.

Klinefelter maintains a $50 price target on shares of JCPenney. With the stock down to under $28 this morning, the Piper Jaffray analyst's price target represents potential upside of about 80 percent.

Visit our Analyst Ratings page to track all the market-moving analyst action on shares of JCPenney.

---

Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW

---

*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here

---

---

You May Also Be Interested In

• Jefferies Bumps Zumiez (ZUMZ) Numbers Up, But Remains on Sidelines
• Needham & Company Lifts Numbers on Marvell (MRVL) on Solid Results
• Pandora (P) Posts 'Strong Quarter' - Needham & Company

Create E-mail Alert Related Categories

Analyst Comments, Analyst EPS Change, Analyst EPS View

Related Entities

Piper Jaffray, Earnings

Add Your Comment

Name

Subject

Body

Share on Facebook

Verification
can't see the text?
click here to refresh the image.
what's this?