NEW YORK (TheStreet) -- Shares of J.C. Penney Co. (JCP) dropped 5.41% to $6.99 after Goldman Sachs downgraded the company to "sell" from "neutral" with a price target of $5.50, citing limited potential for further stock gains, according to Bloomberg.
The Texas-based retailer is showing slowing comparable same-store sales, weak trends in core categories, and lagging e-commerce growth, analysts said.
The downgrade follows a declining pace of growth in holiday sales due to an earlier start to the year-end shopping season, with sales slowing as consumers spread out their purchases instead of being lured by one-day specials.
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 several weaknesses, 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: