J.C. Penney Company Inc. (NYSE:JCP) Claws Back After Coverage From Piper Jaffray
J.C. Penney Company, Inc. (NYSE:JCP), the struggling departmental store and chain store operator has seen its market cap shimmer down to a low of $1.92 billion, thanks to heavy sell off at discounted prices that investors its investors have been indulging in over the past few weeks. This sustained sell off, turned into a deluge during trading on January 8. The stock plummeted by a jaw dropping 10 percent in one single trading session.
Smart Recovery At The Markets
Yesterday, the embattled long term shareholders in the stock of J.C. Penney Company, Inc. (NYSE:JCP) received a reprieve, thanks to which the stock smartly recovered the market valuation it had lost on Wednesday. During trading on December 9, the stock of the Plano Headquartered firm posted a 3.66 percent increase in its market value. The share price had settled at $7.64 by the trading session’s end, thus helping some of the huge losses the share holders had accumulated previously.
Piper Jaffray Upgrade Balm
This recovery of share holder confidence in the stock was accomplished on the back of J.C. Penney Company, Inc. (NYSE:JCP) getting into a damage limiting exercise and analyst agency Piper Jaffray upgrading the stock yesterday. While the retailer came out and reaffirmed its fourth quarter guidance, rating agency Piper Jaffray has gone ahead and placed a overweight rating on the stock from its previous recommendation of neutral. It has also upped the price target on the stock to $11.
Explaining the rationale behind the upgrade, Piper analyst Neely Tamminga has been quoted as saying, “We believe the real message in yesterday’s release is being missed: JCP 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”