JC Penney Gets a Hold Rating from B.Riley FBR

By Austin Angelo

In a report released today, Jeff Van Sinderen from B.Riley FBR maintained a Hold rating on JC Penney (NYSE: JCP), with a price target of $4. The company’s shares closed on Friday at $3.71.

Van Sinderen commented:

“On 3/2/18, pre-market, J.C. Penney (JCP) reported 4Q results with sales/comps/EBITDA that were mixed compared to the Holiday-period trend in the 1/4/18 preannouncement. Comps were +2.6%, as they benefitted from increased traffic. Fine jewelry, home, Sephora, footwear, handbags and salon were the best performers and outperformed the consolidated comp. Women’s comped negative and men’s and kids comped below the company average, but these three categories contributed significantly to GM improvement. JCP expects women’s (easy comparisons) and kids apparel to comp positive in 1Q. Appliances were up over 30% (lower- margin, but profitable segment), while furniture and mattresses comped up nearly 40% and 60%, respectively. E-comm/omni was up high-teens (20% for FY17) with ~18% penetration (including BOPIS). Inventory decreased 3.2% to $2.8B- up lsd per foot, in line with the comp trend. During FY17 the company reduced outstanding debt by $600M.”

According to TipRanks.com, Sinderen is a 1-star analyst with an average return of -2.3% and a 44.0% success rate. Sinderen covers the Services sector, focusing on stocks such as The Finish Line, Tuesday Morning, and American Eagle.

Currently, the analyst consensus on JC Penney is Hold and the average price target is $3.88, representing a 4.6% upside.

In a report issued on March 2, Guggenheim also maintained a Hold rating on the stock.

Based on JC Penney’s latest earnings report for the quarter ending January 31, the company posted quarterly revenue of $4.03 billion and quarterly net profit of $254 million. In comparison, last year the company earned revenue of $3.96 billion and had a net profit of $192 million.

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J. C. Penney Co., Inc. operates department stores, which consist of selling merchandise and services to consumers through its department stores. It sells family apparel and footwear, accessories, fine and fashion jewelry, beauty products through Sephora inside JCPenney and home furnishings.