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2/12/2014, 11:23 AM
Imperial Capital Halves J.C. Penney Company, Inc. (JCP) Price Target
Imperial Capital analysts have maintained their Underperform rating on J.C. Penney Company, Inc. (NYSE:JCP) and lowered their price target to $2.50 from $5.00.
Analysts Mary Ross-Gilbert and Seweryn Sztalkoper of Imperial Capital, however, maintained their Buy rating on the longer-dated senior notes of JCP.
http://www.valuewalk.com/2014/02/imperial-capital-halves-j-c-penney-company-inc-jcp-pt/
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Imperial Capital Halves J.C. Penney Company, Inc. (JCP) Price Target
2/12/2014, 11:23 AM
The analysts point out that their valuation of J.C. Penney Company, Inc. (NYSE:JCP) highlights the limited recoveries to the unsecured debt, which explains the analysts recommendation to hedge a long position in the longer-dated notes by shorting the shares and/or the shorter-dated notes.
Liquidity analysis
Turning their focus to J.C. Penney Company, Inc. (NYSE:JCP)s liquidity estimates, the analysts anticipate JCP could end FY 14 with $1.43 billion in cash for total liquidity of $2.8 billion. The analysts point out that following their lower earnings and commensurate higher cash burn estimates of $564 million, $185 million, $431 million in F1Q14 to F3Q14 respectively, they anticipate the low point in JCPs total cash position of $507 million on 11/1/14 for total liquidity of $1.357 billion. The following table highlights JCPs 2014 quarterly liquidity analysis outlook:
http://www.valuewalk.com/2014/02/imperial-capital-halves-j-c-penney-company-inc-jcp-pt/
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