NEW YORK (TheStreet) -- Shares of J.C. Penney Co. (JCP) are falling, down 5.56% to $6.79 this afternoon, continuing the loss from yesterday after analysts at Goldman Sachs downgraded the company to "sell" from "neutral" citing limited potential for further stock gains.
The firm cut its rating on shares with a 26% downside risk to its $5.50 price target.
Analysts at Goldman Sachs said despite mixed sales results from Black Friday, the retail sector should see a solid holiday season, but companies in the "affordable retail" space may struggle.
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The firm believes the company's under-performance is due to "a combination of e-commerce share gains, a share of wallet shift and weather."
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."