Tuesday, August 7, 2012

Should You Buy JC Penney Shares

Brian Nagel,CFA,Managing Director at Oppenheimer,said we launched coverage of JC Penney with an outperform rating.Many of the concerns about the company are already priced into the stock.As I look out,I think JC Penney is headed in the right direction.
Over the next few years,I see earnings of 3-5 dollars a share.They're finding a new store format that's gonna resonate with consumers in this environment.Their balance sheet will buy them some time as they do this.We've given the stock a price target of 30 dollars.
The Q2 results,which will be reported on Friday,will be messy.I think this is another transitional quarter as their turnaround begins to take hold,Mr.Nagel added.
Mr.Nagel is a Senior Analyst in Hardlines and Broadlines Retail.He has a BSBA from Creighton University.Oppenheimer is a full line brokerage,investment banking and wealth management firm.
JC Penney(JCP),Oppenheimer(OPY)

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