FBR Capital Maintains a 'Market Perform' on J.C. Penney (JCP); Completes $900 Million Share Repurchase Program; Benefits Offset

FBR Capital maintains a 'Market Perform' on J.C. Penney (NYSE: JCP), PT increased from $32 to $35.

FBR analyst says, "J.C. Penney announced the completion of its share repurchase program. We are pleased with the company’s efforts and believe the move was shareholder friendly. Coming out of April sales reporting, however, we are slightly more cautious on the forward comp and margin outlook. Therefore, we have lowered our operating assumptions (comp and margin) for the balance of the year. The net effect of fewer shares and the other changes to our model is a modest increase to 2011 EPS and a more sizeable increase to 2012 EPS." (FBR raises FY11 EPS estimate from $2.07 to $2.11 and FY12 from $2.23 to $2.32)

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 $37.39 yesterday.

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