Bank Of America Raised PT From $30 to $35 And EPS Estimate From $1.98 To $2.16 On J.C. Penney (JCP)

In a recent report, Bank of America has increased the price target on J.C. Penney JCP from $30.00 to $35.00 and the EPS estimate from $1.98 to $2.16 on the company after 1Q11 EPS was $0.04 ahead of Bank of America's $0.24 forecast. The guidance was also raised but the Underperform rating remains unchanged. In the report, Bank of America said, "Higher guidance reflects completion of the $900mn share buyback ($0.20/share), expense cutting, and a number of other adjustments. We are raising our estimates by $0.18 in both F2011 and F2012 to $2.16 and $2.66, respectively, and our price target to $35 to reflect these factors. We maintain our Underperform rating as we continue to see risk to guidance for flat gross margins given product cost inflation in 2H." J.C. Penney closed yesterday at $37.21.