J. C. Penney (JCP) SSS Slowdown Concerning, Says Deutsche Bank
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Rating Summary:
1 Buy, 21 Hold, 11 Sell
Rating Trend: = Flat
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Up: 16 | Down: 11 | New: 13
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Deutsche Bank maintained a Hold rating on J. C. Penney (NYSE: JCP) with a price target of $8. Analyst Paul Trussell commented follow Q3 results, calling its SSS slowdown "concerning."
"While weather presented a headwind and the cycling of material clearance events in Sept. last year is an understandable hurdle, we are very concerned with the SSS slowdown to flat in 3Q," said Trussell.
"Combined with SSS guidance of only 2%-4% in 4Q and comments on the call that many of the initiatives will not kick in until 2H15, JCP is already well off track of its 3 year plan (outlined last month) to consistently drive MSD comps and attain $14.5B in sales. In fact, our updated 2017 model falls short of JCP’s revenue plan by $1.0B. Margins in 3Q were stronger than expected, but at current levels the clawback of market share will needed for further gains. We remain on sidelines with an $8 PT," he added.
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 $7.76 yesterday.
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