Morgan Stanley Sees Further Downside Risk For J C Penney Company Inc

In a report published Wednesday, Morgan Stanley analyst Kimberly C. Greenberger reiterated an Underweight rating and $7.00 price target on J C Penney Company Inc (NYSE: JCP).

In the report, Morgan Stanley noted, “We are UW [on] JCP shares. We see further downside risk: we estimate JCP needs to comp +4-6% for four straight years and grow operating margin 1300 bps in the process to yield $0.35 in 2017 EPS, leaving little to support equity value at this level. Sales are already decelerating after comps peaked at 10.1% in November '13, yielding downside risk to our forecast.”

J C Penney Company Inc closed on Tuesday at $10.04.