UBS Starts Coverage on Several Major Retailers (JCP, JWN, KSS, M)

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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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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This article appears in: Investing , Stocks

Referenced Stocks: JCP , JWN , KSS , M

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