UPDATE: Sterne Agee Initiates JC Penney at Buy, Believes the Company will Return to 'Glory Days'

In a report published on Wednesday, analysts at Sterne Agee initiated coverage on JC Penney JCP with a Buy rating and $23.00 price target. In the report, lead analyst Charles Grom commented that, "With bankruptcy off the table and new CEO Mike Ullman calling the shots, we think the table is set for a two-step trade in JCP. The first will come as the JCP team tells a new story, focusing on “where it's going” not “where's it's been,” washing the slate clean. The second will come as JCP pulls out its old playbook – i.e., promotions, coupons, focus on private brands – while leveraging some of the in- store/product improvements/enhancements made by the former team." JC Penney closed on Wednesday at $18.16.