Deutsche Bank Starts J. C. Penney (JCP) at Sell, Notes The New CEO Isn't God
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Price: $19.31 +2.66%
Rating Summary:
5 Buy, 13 Hold, 6 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 24 | New: 24
Rating Summary:
5 Buy, 13 Hold, 6 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 24 | New: 24
Trade JCP Now!
Deutsche Bank initiates coverage on shares of J. C. Penney (NYSE: JCP) with a Sell rating and $22 price target.
With the stock trading at 12.5x its 2012 earnings, while Macy's (NYSE: M) is trading at 8.2x and Kohl's (NYSE: KSS) is trading at 8.4x, the firm believes that the market is anticipating a quicker turnaround from its new CEO Ron Johnson than plausible.
The firm notes that shares are high due to their new strategy and plans to restructure the company that were announced in past months.
Deutshce forecasts that the Street's earning estimates for the fourth quarter and for 2012 look too high. The firm's $2.10 EPS estimate for 2012 may also prove to be optimistic, the consensus is currently $2.23.
An analyst at Deutsche comments, "While we don't doubt Mr. Johnson's business acumen, we do know that retail image issues are difficult to overcome and merchandise lead times are long, suggesting to us that no quick fix is likely in 2012; with 2013 the earliest we could expect to see signs of change."
For more ratings news on J. C. Penney click here and for the rating history of J. C. Penney click here.
Shares of J. C. Penney closed at $26.23 yesterday, with a 52 week range of $21.27-$41.00.
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With the stock trading at 12.5x its 2012 earnings, while Macy's (NYSE: M) is trading at 8.2x and Kohl's (NYSE: KSS) is trading at 8.4x, the firm believes that the market is anticipating a quicker turnaround from its new CEO Ron Johnson than plausible.
The firm notes that shares are high due to their new strategy and plans to restructure the company that were announced in past months.
Deutshce forecasts that the Street's earning estimates for the fourth quarter and for 2012 look too high. The firm's $2.10 EPS estimate for 2012 may also prove to be optimistic, the consensus is currently $2.23.
An analyst at Deutsche comments, "While we don't doubt Mr. Johnson's business acumen, we do know that retail image issues are difficult to overcome and merchandise lead times are long, suggesting to us that no quick fix is likely in 2012; with 2013 the earliest we could expect to see signs of change."
For more ratings news on J. C. Penney click here and for the rating history of J. C. Penney click here.
Shares of J. C. Penney closed at $26.23 yesterday, with a 52 week range of $21.27-$41.00.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
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