Gilford Securities Upgrades JCP To Buy from Hold

Gilford Securities is upgrading J.C. Penney Company, Inc. JCP to Buy from Hold. “With earnings far below pre-recession levels, Penney is doing poorly relative to retailers whose profits have rebounded robustly. JCP's catch-up phase may have begun,” Gilford Securities writes. “Management forecasts EPS of over $5.00 by 2014, versus 2007's high of $4.90. We think $5.50-$6.00 may be attainable given an expanding economy. “Same-store sales rose 5.7% for Nov./Dec. combined. This suggests 4Q/10 profits will be better than $0.90-$1.00 guidance and the Street's range of $0.90-$1.02. We estimate $1.06 versus $0.83 a year ago and $2.09 in 4Q/06.” J.C. Penney Company currently trades at $32.51.