Analyst boosts J.C. Penney to 'Overweight'

By Associated Press
June 29, 2009 | Comments (0)

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An appealing stock price and potential to top gross margin expectations led a Morgan Stanley analyst to upgrade J.C. Penney Co. to "Overweight" from "Equal-weight."

Analyst Michelle Clark said in a Sunday client note that she sees selective investment opportunities in the department store sector, recommending J.C. Penney as one of the best ways to tap into the group.

Clark believes the Plano, Texas-based chain can top gross margin expectations during the second half of the year partly on declining apparel costs and high private label penetration.

Clark's upgrade comes just days after JPMorgan analyst Charles Grom raised J.C. Penney's rating to "Overweight" from "Neutral" and lifted its share price target to $33 from $28, citing improving retail trends.

Shares of J.C. Penney added 70 cents, or 2.5 percent, to $29.08 in morning trading.

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Related Tickers

12/1/2009 4:00 PM
JCP $28.81 Up +0.07 +0.24%
J.C. Penney Compan… CAPS Rating: **
MS $31.52 Down -0.06 -0.19%
Morgan Stanley CAPS Rating: **

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