Analysts at UBS on Wednesday initiated coverage on several major
U.S. retailers, mostly with lukewarm ratings.
The firm said it started coverage on J.C. Penney (
JCP
) with a "Neutral" and $36 price target, suggesting an 8% upside to
the stock's Tuesday closing price of $33.21. UBS noted that recent
cost cuts by the company could put a floor under the shares for the
time being.
Meanwhile, UBS initiated Nordstrom, Inc. (
JWN
) with a "Buy" rating and $63 price target, implying an 18% upside.
The analyst sees hidden value within the company that could support
a premium valuation.
UBS also began covering Kohl's Corporation (
KSS
) with a "Neutral" rating with a $53 price target (8% upside). The
firm noted that although KSS still experiences growing pains, its
new capital deployment strategy could aid its valuation.
Finally, UBS initiated coverage on Macy's, Inc. (
M
) as "Neutral" with a $43 price target, suggesting a 11.5% upside
to the stock's Tuesday closing price of $38.56. The analyst noted
that recent same-store sales outperformance should continue in
upcoming quarters.
The Bottom Line
Shares of J.C. Penney (
JCP
) have a 2.41% dividend yield, based on last night's closing stock
price of $33.21. The stock has technical support in the $28-$30
price area. If the shares can firm up, we see overhead resistance
around the $36 price level. Shares of Nordstrom Inc. (
JWN
) have a 2.02% dividend yield, based on last night's closing stock
price of $53.46. The stock has technical support in the $50 price
area. The stock is trading near the all-time highs levels of
$56-$57 a share. Shares of Kohl's (
KSS
) have a 2.61% dividend yield, based on last night's closing stock
price of $48.95. The stock has technical support in the $45-$46
price area. If the shares can firm up, we see overhead resistance
around the $52 price level. Shares of Macy's (
M
) have a 1.04% dividend yield, based on last night's closing stock
price of $38.56. The stock has technical support in the $34-$36
price area. If the shares can firm up, we see overhead resistance
around the $40-$41 price levels.
None of the dividend stocks mentioned in this article are
currently recommended by Dividend.com.
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, as well as a detailed explanation of
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.