Guggenheim Sticks to Its Hold Rating for JC Penney (JCP)

In a report released today, Robert Drbul from Guggenheim maintained a Hold rating on JC Penney (JCP). The company’s shares opened today at $1.07, close to its 52-week low of $0.92.

Drbul wrote:

“We have revised our estimates to reflect today’s results and our updated outlook. CEO Jill Soltau is tasked with improving a challenged business, and while we acknowledge the potential for EBITDA/margin improvement, given the highly competitive environment, we maintain our NEUTRAL rating as we believe the challenges in the business are appropriately reflected in the shares. CEO Jill Soltau continues to build her team, and the company today announced it has hired Shawn Gensch as Chief Customer Officer. Over the past few months, JCP has notably hired a new Chief Merchant (Michelle Wlazlo; February) and CFO (Bill Wafford; March), as well as other positions across the senior management team. In terms of additional leadership needs, JCP said it will look to add a new leader for the company’s e-commerce and omnichannel offering.”

According to TipRanks.com, Drbul is a 5-star analyst with an average return of 10.1% and a 65.8% success rate. Drbul covers the Services sector, focusing on stocks such as National Vision Holdings Inc, Ascena Retail Group, and Ralph Lauren Corp.

The word on The Street in general, suggests a Hold analyst consensus rating for JC Penney with a $1.70 average price target, representing a 58.9% upside. In a report issued on May 17, B.Riley FBR also assigned a Hold rating to the stock with a $1.40 price target.

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The company has a one-year high of $3.16 and a one-year low of $0.92. Currently, JC Penney has an average volume of 9.88M.

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J. C. Penney Co., Inc. is a holding company, which through its subsidiary, J. C. Penney Corporation, Inc., engages in the selling merchandise and services to consumers through its department stores and website. It offers appliances, handbags, shoes, jewelry, shoes, and clothes.