JCP – Analyst Price Target Points to 40%+ Upside in JCPenney Stock

by Christopher Freeburn | January 10, 2014 10:44 am

JCP – Analyst Price Target Points to 40%+ Upside in JCPenney Stock

jcpenney185 JCP   Analyst Price Target Points to 40%+ Upside in JCPenney Stock[1]On Thursday, Piper Jaffray gave struggling retailer JCPenney (JCP[2]) a vote of confidence[3].

The investment firm raised its rating of JCPenney stock to “overweight,” up from a prior rating of “neutral.” Piper Jaffray noted that JCPenney had recently reiterated its fourth-quarter outlook, despite the highly-competitive holiday shopping season, TheFlyOnTheWall notes

Piper Jaffray has a price target of $11 a share for JCPenney stock. At its current price, JCPenney stock would have to climb more than 47% to hit that target.

JCPenney has struggled to entice shoppers back to its stores in a bid to recover from the disastrous “no sales” strategy of former CEO Ron Johnson[4], who was ousted earlier this year.

In recent months, the retailer has been hit with rumors of impending bankruptcy[5].

Other analysts don’t share Piper Jaffray’s optimistic outlook for JCPenney stock. Zacks continues to hold a “neutral” rating on JCPenney stock, while Wells Fargo (WFC[6]) gives JCPenney stock an “underperform” rating.

Though JCPenney stock rose more than 4% on Thursday, investors appeared less pleased with the retailer on Thursday, sending JCP stock down almost 3% in morning trading.

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2013/12/jcpenney185.jpg
  2. JCP: http://studio-5.financialcontent.com/investplace/quote?Symbol=JCP
  3. a vote of confidence: http://www.wkrb13.com/markets/247160/piper-jaffray-upgrades-j-c-penney-co-to-overweight-jcp/
  4. the disastrous “no sales” strategy of former CEO Ron Johnson: http://investorplace.com/2013/04/ackman-finally-realizes-that-jcpenney-hit-rock-bottom-now-what/#.UtAUhXm1Kf0
  5. rumors of impending bankruptcy: http://investorplace.com/2013/10/jcp-jcpenney-bankruptcy/#.UtAT43m1Kf0
  6. WFC: http://studio-5.financialcontent.com/investplace/quote?Symbol=WFC

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