JC Penney DROPS and 4 Must-Read Stock Insights

Allergan Inc. (NYSE:AGN): Leerink estimates of the rejection of Allergan’s Lumigan from the CVS/Caremark formulary will lower the company’s 2013 earnings by 6c. Leerink does not think the exclusion points to larger change within managed care companies regarding the status of Lumigan and the company’s opthalmology franchise and maintains an Outperform rating on Allergan shares.

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Duke Energy Corporation (NYSE:DUK): Bernstein thinks the risks Duke may encounter have gone up notably following the launch by North Carolina authorities into the departure of former Progress Energy CEO William Johnson. The firm thinks the stock will be materially discounted in coming months, but adds that Duke’s board most likely behaved in a legally defensible way. The firm reiterates a $69 target and Market Perform rating on the shares.

Yahoo! Inc. (NASDAQ:YHOO) will post higher than planned Q2 revenue and EBITDA, Bernstein thinks. The firm’s positivity on Yahoo, however, is due to the increased chances of a liquidity event for the company’s Asian assets. Due to this, the firm believes a miss by Yahoo would most likely make for a busing opportunity. Bernstein reiterates a $19 target and Outperform rating on the shares.

J. C. Penney Company, Inc. (NYSE:JCP) started Q2 with a surplus of inventory and simultaneously slowed some clearance sales, says Credit Suisse. The firm thinks this situation, plus the overall unimpressive sales pace, means the retailer is trailing its unfortunate Q1 results. The firm rates the retailer Neutral, with a price target of $25. Additionally, J.C. Penney announced it will cut ANOTHER 350 jobs at its Plano, TX headquarters.

Hertz Global Holdings, Inc. (NYSE:HTZ): Wells Fargo believes Hertz’s channel disposition strategy will mostly mitigate the negative earnings impact from a possible lowering in U.S. used vehicle valuations. The firm does not think Hertz is “over-earning” due to high used vehicle prices and maintains an Outperform rating on the stock.

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