Morgan Stanley Upgrades JC Penney (JCP) to Equalweight

(Updated - February 13, 2017 6:57 AM EST)

(Updated - February 13, 2017 2:43 AM EST)

Morgan Stanley upgraded JC Penney (NYSE: JCP) from Underweight to Equalweight with a price target of $7.00 (from $8.00).

Analyst Kimberly Greenberger comments "With diminished downside risk after a 14% decline year-to-date and potential catalysts ahead, we upgrade JCP shares. A refresh of our model and Bull/Base/Bear scenarios yield a new $7 price target (vs. prior $8) and $12 Bull case/$2 Bear case values, implying 1:1 risk-reward skew. However, the secular challenges facing the Department Stores in addition to JCP's ~5.5x leverage (adj. net debt/LTM EBITDAR) could limit upside potential, in our view."

For an analyst ratings summary and ratings history on click here. For more ratings news on click here.

Shares of closed at $10.09 Friday.

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