TheStreet reported that Sterne Agee has placed J.C.Penney’s liquidity position under the microscope and found the embattled retailer’s cash situation worrisome, so much so it has suspended its $3 price target.
TheStreet notes that the move comes nearly a week after institutional investors Hotchkis & Wiley, Dodge & Cox and Hayman Capital withdrew their positions in the retailer.
Sterne Agee’s Charles Grom, Renato Basanta and John Parke said while they expect a sales turnaround, the company will likely run into cash concerns within a few quarters at the current pace of recovery, TheStreet added.
To read the entire TheStreet article, click here.
Previously on abfjournal: WSJ: AlixPartners Assisting J.C. Penney, November 7, 2013