Nomura Maintains Lowest Rating on J. C. Penney (JCP) Following Results

Nomura Securities analyst Robert Drbull reiterated his Reduce rating and $8 price target on J. C. Penney (NYSE: JCP) following results after the close.

Drbull commented, "The company reported 3Q14 revenue of $2.76bn, a 0.5% decrease vs 3Q13, though posted a $342m improvement in EBITDA and beat the street’s estimates for the bottom line. Comp sales were flat for the quarter, in line with our estimates. Given the flat comp in 3Q, which was below the comp expectation reset given at the Analyst Day on 8 October, and noting a sequentially more difficult 4Q comp compare, we are maintaining our flat comp store sales expectation for 4Q. Given the strong margin improvement in 3Q and encouraging inventory levels, we have revised our gross margin expectations for 4Q. FY14E."

The firm adjusted FY14E EPS from ($2.90) to ($2.80); FY15E EPS from ($1.55) to ($1.50).

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 $7.76 yesterday.

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