J. C. Penney (JCP) Price Target Lowered to $6 at Goldman
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Price: $0.18 --0%
Rating Summary:
1 Buy, 21 Hold, 11 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 5 | Down: 18 | New: 28
Rating Summary:
1 Buy, 21 Hold, 11 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 5 | Down: 18 | New: 28
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Goldman Sachs maintained a Neutral rating on J. C. Penney (NYSE: JCP) and lowered its price target to $6.00 (from $7.00). Its bull case scenario was lowered to $10. The change follows news the company plans to close 33 underperforming stores.
Analyst Stephen Grambling said, "Given these stores were losing money on a cash
basis, we view the announcement as a prudent use of capital."
"Our FY13/14/15 EPS estimates move to ($5.89)/($2.92)/($2.16) from ($5.85)/($2.78)/($2.00), to account for the cost savings and reduction in sales from the announced store closures plus incremental gross margin pressure. Our recent store checks found an inflow of clearance merchandise following both a difficult holiday period across most of retail and JCP's press release earlier this month in which it did not disclose December same-store-sales growth," he added.
"Our $12-month price target moves to $6 from $7 based on an equalweighted combination of DCF and EV/EBITDA scenario analysis. Our bull case scenario is reduced to $10 on less gross margin upside."
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 $6.93 yesterday.
Analyst Stephen Grambling said, "Given these stores were losing money on a cash
basis, we view the announcement as a prudent use of capital."
"Our FY13/14/15 EPS estimates move to ($5.89)/($2.92)/($2.16) from ($5.85)/($2.78)/($2.00), to account for the cost savings and reduction in sales from the announced store closures plus incremental gross margin pressure. Our recent store checks found an inflow of clearance merchandise following both a difficult holiday period across most of retail and JCP's press release earlier this month in which it did not disclose December same-store-sales growth," he added.
"Our $12-month price target moves to $6 from $7 based on an equalweighted combination of DCF and EV/EBITDA scenario analysis. Our bull case scenario is reduced to $10 on less gross margin upside."
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 $6.93 yesterday.
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