More Evidence J. C. Penney (JCP) is Turning Away From Johnson's Failed Strategy and Winning
Tweet
Share
E-mail
Get Alerts JCP Hot Sheet
Price: $0.18 --0%
Rating Summary:
1 Buy, 21 Hold, 11 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 13
Rating Summary:
1 Buy, 21 Hold, 11 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 13
Join SI Premium – FREE
One of the rare bulls on J. C. Penney (NYSE: JCP) is getting more bullish.
Oppenheimer analyst Brian Nagel said continued promotions are showing evidence of success, providing momentum into the new year.
"We are increasingly optimistic that the more price promotional stance that JCPenney is now assuming will allow the chain to make the most of a challenging Holiday selling season and position it well to re-accelerate its aggressive turnaround strategy in 2013," Nagel said.
The analyst noted that the aggressive promotions at the company that began a few weeks ago - counter to Johnson's non-promotion strategy - persist. Certain older categories now appear fully cleared, the analyst said.
"A move back to more aggressive price promotions represents a clear deviation from the strict EDLP strategy initially outlined by CEO Ron Johnson," the analyst noted.
"That said, we think a hybrid promotional effort will improve cash generation and serve as a more steady traffic driver for JCP."
The firm reiterated an Outperform rating and $30 price target.
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 $19.59 yesterday.
Oppenheimer analyst Brian Nagel said continued promotions are showing evidence of success, providing momentum into the new year.
"We are increasingly optimistic that the more price promotional stance that JCPenney is now assuming will allow the chain to make the most of a challenging Holiday selling season and position it well to re-accelerate its aggressive turnaround strategy in 2013," Nagel said.
The analyst noted that the aggressive promotions at the company that began a few weeks ago - counter to Johnson's non-promotion strategy - persist. Certain older categories now appear fully cleared, the analyst said.
"A move back to more aggressive price promotions represents a clear deviation from the strict EDLP strategy initially outlined by CEO Ron Johnson," the analyst noted.
"That said, we think a hybrid promotional effort will improve cash generation and serve as a more steady traffic driver for JCP."
The firm reiterated an Outperform rating and $30 price target.
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 $19.59 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- META to capture largest share of users, SNAP to benefit from ad budget shifts - Canaccord Genuity weighs in on TikTok ban
- Mizuho on Intel (INTC): "Just when you thought it could not get any worse..."
- Symrise AG (SY1:GR) (SYIEY) PT Raised to EUR120 at CFRA
Create E-mail Alert Related Categories
Analyst CommentsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
