J. C. Penney (JCP) Remains Top Pick at Piper Jaffray Following Management Meetings

Piper Jaffray analyst Neely Tamminga reiterated an Overweight rating and $20 price target on J. C. Penney (NYSE: JCP) after travels with Ed Record (CFO) and Trent Kruse (IR) in New York.

Tamminga said key topics of interest on investors' minds include: 1) SG&A expense savings which are expected to result in SG&A dollars decreasing in 2016; 2) capital expenditures of $375M slated for 2016 aimed at digital, additional Sephora roll outs and center core remodels; and 3) appliances being piloted in 22 stores.

"These many initiatives - aimed at driving traffic, sales and profitability higher over time- give us further confidence in the company's ability to recapture at least $2B of the $6B in lost revenues while climbing on the path back up to at least $1.2B+ in EBITDA," Tamminga said.

The stock remains a 2016 top pick at the firm.

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 $11.22 yesterday.

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