JCPenney stock plummeted nearly 8% Monday morning after a UBS note sent out to clients noted the company has a "tough path forward."
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JCPenney sinks after UBS warns of a 'tough path forward' (JCP)
JCPenney stock plummeted nearly 8% Monday morning after reporting a lackluster first quarter results Friday morning.
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The report comes on the heels of JCPenney's lackluster first quarter earnings report released Friday morning.
The department store reported that same-store sales fell 3.5% versus a year ago. Earnings per share slumped $0.26 from last year.
"After a big 1Q SSS shortfall (-3.5% vs our -0.5%), JCP needs 2-yr SSS to accelerate by +3.7-6.3pp in 2Q-4Q to hit its guide for -1% to +1% SSS for the year," wrote the UBS team led by Michael Binetti.
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The bank has lowered its price target for JCPenney to $4 per share, below its original 12-month price target of $5. Currently, the stock trades at $4.31 per share.
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