NEW YORK (TheStreet) -- Shares of J.C. Penney (JCP) continued to decline 5.2% to $10.21 on Friday after Credit Suisse (CS) said Thursday the department store chain could face some difficulties in the near future.
"We acknowledge clear progress to date, but we remain very cautious on these shares," the firm wrote in a research note. "Things have changed in the department store industry since J.C. Penney achieved peak sales (in '06) and margins (in '09). The consolidation of the industry and the advent of the importance of FAB to the merchandise mix are two the issues that were not present in '06 that will now weigh on results for J.C. Penney."
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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 some concerns, 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 generally high debt management risk and generally disappointing historical performance in the stock itself."
Highlights from the analysis by TheStreet Ratings Team goes as follows: