Sterne Agee Getting Bullish On J.C. Penney

On Wednesday, Sterne Agee released a bullish note on J.C. Penney (NYSE: JCP) after walking some New York and New Jersey stores. Analyst Charles Grom's “eye test” indicates that traffic levels have been “modestly improving,” but sees “no significant inflection yet.”

Grom observed that reordering and re-merchandising is “close to being complete.” The analyst also notes that J.C. Penney has “returned to a commission-based compensation structure in Home this past weekend.

Grom maintained a Neutral rating on the stock.

Shares of J.C. Penney are up 2.1 percent to $8.86. The stock has had an amazing run from the prior low at $4.90, up more than 80 percent from that point.