Why Piper Sees Upside in J C Penney Company Inc (JCP)

Piper Jaffray believes warmer weather versus last year and greater mall traffic from Apple (AAPL) Watch interest will drive positive Q1 momentum for J C Penney Company Inc (NYSE:JCP). Piper raised its comp estimate for Q1 to up 3% from up 1% and its price target for shares to $14 from $13. The firm keeps an Overweight rating on J.C. Penney.

Wall Street analysts have placed a target price of $7.5 for J C Penney Company Inc (NYSE:JCP). This number is based on the mean consensus estimate from the 10 research firms that recently issued reports on the stock.

The average broker recommendation is arithmetical average of the individual ratings contributed by sell-side analysts to produce a Consensus Analyst Rating for each stock. On a scale of 1 to 5 where 1 is a Strong Buy and 5 is a Strong Sell, has the stock ranked 3.33 based on 10 broker recommendations. Of the 10 analysts who have issued estimates, the most bullish sees the stock reaching $13 within the next 12 months while the most conservative sees the stock at $3 within the year.

According to analysts, J C Penney Company Inc (NYSE:JCP) is expected to report earnings per share for the current fiscal quarter of $-0.8. This is the consensus mean estimate based on the individual covering sell-side analysts’ reported numbers. The company last reported earnings for the period ending on 2015-01-31 of $0. The reported number was -0.14 away from the consensus estimate, or a surprise factor of -100 .

J. C. Penney Company, Inc. (jcpenney) is a holding company. The Company is a retailer, operating 1,102 department stores in 49 states and Puerto Rico as of January 28, 2012. Its business consists of selling merchandise and services to consumers through its department stores and through its Internet Website at jcp.com. It sells family apparel and footwear, accessories, fine and fashion jewelry, beauty products through Sephora inside jcpenney and home furnishings. As of January 28, 2012, its supply chain network operated 27 facilities at 18 locations, of which nine were owned, with multiple types of distribution activities housed in certain owned locations. Its operating subsidiary is J. C. Penney Corporation, Inc. In November 2011, it completed acquired the worldwide rights for the Liz Claiborne family of trademarks and related intellectual property, as well as the United States and Puerto Rico rights for the Monet trademarks and related intellectual property.