Goldman Sachs Cuts Numbers on J. C. Penney (JCP), But Says Efforts Underway to Dig Out
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Rating Summary:
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Today's Overall Ratings:
Up: 6 | Down: 5 | New: 3
Rating Summary:
1 Buy, 21 Hold, 11 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 6 | Down: 5 | New: 3
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Goldman Sachs lowered estimates and its price target on J. C. Penney (NYSE: JCP) from $35 to $31 following dismal Q1 results.
While sales fell short, the firm notes progress across cost savings are ahead of plan, which allowed the company to re-affirm its FY12 EPS guidance.
Commenting, the firm said, "Marketing tweaks and new product introductions are underway to turnaround (10)% traffic, however, we believe 2012's transformation will likely take longer to execute especially in a more competitive retail backdrop. We believe the required steeper 2H sales ramp will be tougher to come by and, as a result, our FY12E EPS, excluding pension expense, sits below guidance at $2.00."
The firm lowered FY12E/FY13E/FY14E EPS to $1.45/$2.30/2.78 from $1.63/$2.48/$2.83 as lower sales estimates are only partially offset by an accelerated run rate in cost savings.
For an analyst ratings summary and ratings history on J. C. Penney click here. For more ratings news on J. C. Penney click here.
Goldman maintained their Neutral rating.
Shares of J. C. Penney closed at $33.32 yesterday.
While sales fell short, the firm notes progress across cost savings are ahead of plan, which allowed the company to re-affirm its FY12 EPS guidance.
Commenting, the firm said, "Marketing tweaks and new product introductions are underway to turnaround (10)% traffic, however, we believe 2012's transformation will likely take longer to execute especially in a more competitive retail backdrop. We believe the required steeper 2H sales ramp will be tougher to come by and, as a result, our FY12E EPS, excluding pension expense, sits below guidance at $2.00."
The firm lowered FY12E/FY13E/FY14E EPS to $1.45/$2.30/2.78 from $1.63/$2.48/$2.83 as lower sales estimates are only partially offset by an accelerated run rate in cost savings.
For an analyst ratings summary and ratings history on J. C. Penney click here. For more ratings news on J. C. Penney click here.
Goldman maintained their Neutral rating.
Shares of J. C. Penney closed at $33.32 yesterday.
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