Analysts: J.C. Penney’s Recovery Slower Is Than Anticipated and 3 Other Research Notes to Look Over

J.C. Penney (NYSE:JCP): Sterne Agee downgraded J.C. Penney to Neutral from Buy, as the firm’s checks suggest the store’s recovery is slower than expected, even though promotional activity is at “unprecedented” levels and store racks are crowded. The analyst fears J.C. Penney’s core customers may have been “fired” by former CEO Ron Johnson, leading the firm to downgrade shares to Neutral. The price target is $9.

JCP 20131008

Gilead (NASDAQ:GILD): After surveying 26 infectious disease specialists, Oppenheimer reports that physicians strongly prefer the TAF STRs over existing HIV treatment options. The firm thinks that TAF, if priced competitively, would enable Gilead’s HIV treatment revenue to significantly exceed expectations. It keeps an Outperform rating on Gilead.

GILD 20131008

Fifth & Pacific (NYSE:FNP): Brean Capital believes Fifth & Pacific’s recent sale of intellectual property will allow for the company to focus on growth prospects as it removes an underperforming business. Brean thinks the move brings the Fifth & Pacific closer to becoming a pure-play high growth investment; the shares are Buy rated with a $30 price target.

FNP 20131008

Splunk (NASDAQ:SPLK): JPMorgan believes Splunk has the ability to become a much larger company over the next few years, but admits Splunk stock is expensive by most valuation metrics. The firm raised its price target for shares to $72 from $57 and keeps an Overweight rating on the name.

SPLK 20131008

Don’t Miss: China Doesn’t Find Yum Brands So Yummy.

More from The Cheat Sheet