Tuesday, January 14, 2014 4:53:50 PM
Was J.C. Penney’s stock dive an overreaction?
By Maria Halkias
mhalkias@dallasnews.com
11:55 am on January 9, 2014 | Permalink
More sharing from Me
http://bizbeatblog.dallasnews.com/2014/01/was-j-c-penneys-stock-dive-an-overreaction.html/
J.C. Penney’s stock is up about 5 percent today after Piper Jaffray analysts offered support for the Plano-based retailer’s turnaround efforts.
Piper Jaffray concluded that Wednesday’s stock price dive based on Penney’s thin press release about December sales was a big “overreaction.”
Analysts Neely Tamminga and Kayla Berg raised their rating on Penney stock from neutral to overweight and reiterated an $11 stock price.
“We believe the real message in yesterday’s release is being missed: J.C. Penney is doing what they said they would do, and we believe any retailer reiterating their guidance following this compressed, promotional, mall-traffic-starved holiday season is a winner in our book.”
That combined with liquidity concerns being off the table for a while, was behind the rating increase.
By Maria Halkias
mhalkias@dallasnews.com
11:55 am on January 9, 2014 | Permalink
More sharing from Me
http://bizbeatblog.dallasnews.com/2014/01/was-j-c-penneys-stock-dive-an-overreaction.html/
J.C. Penney’s stock is up about 5 percent today after Piper Jaffray analysts offered support for the Plano-based retailer’s turnaround efforts.
Piper Jaffray concluded that Wednesday’s stock price dive based on Penney’s thin press release about December sales was a big “overreaction.”
Analysts Neely Tamminga and Kayla Berg raised their rating on Penney stock from neutral to overweight and reiterated an $11 stock price.
“We believe the real message in yesterday’s release is being missed: J.C. Penney is doing what they said they would do, and we believe any retailer reiterating their guidance following this compressed, promotional, mall-traffic-starved holiday season is a winner in our book.”
That combined with liquidity concerns being off the table for a while, was behind the rating increase.
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