Nomura Securities Slashes Numbers on J. C. Penney (JCP), Co. Many Need to Draw on Revolver
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Price: $0.18 --0%
Rating Summary:
1 Buy, 21 Hold, 11 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
1 Buy, 21 Hold, 11 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Nomura Securities slashed estimates and its price target on Neutral-rated J. C. Penney (NYSE: JCP) from $26 to $18.
"Despite weak financial results, JCP is moving forward with its transformational strategy, albeit with some mid-course corrections," analyst , Paul Lejuez notes. "The hope is that as more shops are constructed, the company will gain more traction with customers. Based on our current estimates, which forecast a loss of $370MM in the first three qtrs of F13, JCP may need to draw on its revolver during the peak borrowing period (3Q). Although the company has plenty of capacity ($1.5BN), the need to borrow would not be a good signal to the market.
The firm cut F12E EPS from ($1.40) to ($2.50) and F13E EPS from $1.02 to ($1.10).
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 $17.97 yesterday.
"Despite weak financial results, JCP is moving forward with its transformational strategy, albeit with some mid-course corrections," analyst , Paul Lejuez notes. "The hope is that as more shops are constructed, the company will gain more traction with customers. Based on our current estimates, which forecast a loss of $370MM in the first three qtrs of F13, JCP may need to draw on its revolver during the peak borrowing period (3Q). Although the company has plenty of capacity ($1.5BN), the need to borrow would not be a good signal to the market.
The firm cut F12E EPS from ($1.40) to ($2.50) and F13E EPS from $1.02 to ($1.10).
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 $17.97 yesterday.
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