Research analysts at JPMorgan Chase & Co. decreased their target price on shares of J.C. Penney Co. (NYSE:JCP) from $18.00 to $13.00 in a report released on Monday, AnalystRatings.Net reports. The firm currently has a “neutral” rating on the stock. JPMorgan Chase & Co.’s price target would suggest a potential downside of 2.99% from the stock’s previous close.
The analysts wrote, “Heading into JCP’s 2Q EPS Tuesday (8/20), we hosted a Bull/Bear lunch (25+ clients on 8/16) to discuss key themes and the current setup into the print. Importantly, sentiment on the stock has reached rock bottom (lowest since covering the name, in our view) with investors feeling the “dynamics have changed” with a liquidity raise by year-end ($1B+) a near-certainty ($1.2B cash burn in 2Q alone) and Pershing’s position (4-5 days of volume) now an overhang. Key topics of discussion included liquidity (raise by YE consensus), sales-to-GPM LT algorithm (return to ’11 sales/sq. ft & GPM deemed unlikely), and valuation (equity value $0 using basket of distressed retailers on EV/sales). The bar for 2Q appears to be negative HSD-LDD SSS (JPM -6.8%) and GPM down 200-400bps (JPM: -680bps) with areas of focus into 2Q: (1) balance sheet details (WC/Capex) and potential financing (equity raise vs. convert), (2) gross margin degradation and LT structural impediments, and (3) 3Q-to-date SSS trends (2H consensus is 3Q +LSD SSS w/ 4Q +HSD).”
Shares of J.C. Penney Co. (NYSE:JCP) traded down 1.23% during mid-day trading on Monday, hitting $13.235. 6,630,772 shares of the company’s stock traded hands. J.C. Penney Co. has a 52-week low of $12.34 and a 52-week high of $32.55. The stock’s 50-day moving average is $15.57 and its 200-day moving average is $16.85. The company’s market cap is $2.916 billion.
A number of other firms have also recently commented on JCP. Analysts at Northcoast Research upgraded shares of J.C. Penney Co. from a “sell” rating to a “neutral” rating in a research note to investors on Friday, August 9th. They now have a $13.00 price target on the stock. Separately, analysts at Imperial Capital cut their price target on shares of J.C. Penney Co. from $10.00 to $8.00 in a research note to investors on Monday, August 5th. They now have an “underperform” rating on the stock. Finally, analysts at Buckingham Research reiterated a “buy” rating on shares of J.C. Penney Co. in a research note to investors on Thursday, August 1st.
Eight analysts have rated the stock with a sell rating, eleven have given a hold rating and eight have given a buy rating to the company. The company presently has an average rating of “Hold” and a consensus price target of $16.39.
J. C. Penney Company, Inc (NYSE:JCP), is a holding company.