JC Penney lost 1.2% to $5.02 Wednesday.
The analyst firm lowered its price target for the stock to $4 from $5. UBS also lowered its earnings estimates for the retailer through 2016. For 2014 the firm expects a loss of $6.19 a share, down from a loss of $6.11 a share. The firm expects a loss of $2.48 in 2015, and a loss of $1.93 through 2016.
The analysts wrote, "We believe JCP's recent decision to close 33 stores highlights the company's efforts to minimize cash burn and downsize to a smaller, more profitable store base. If JCP's SSS cannot accelerate to a +MSD range (or better) we have concerns that there could be downside to our '14 sales, GM, EBITDA and FCF estimates."
Separately, TheStreet Ratings team rates PENNEY (J C) CO as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate PENNEY (J C) CO (JCP) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, generally high debt management risk, disappointing return on equity and poor profit margins."