J.C. Penney rose the most in six months after an analyst at ISI Group said the retailer could turn its top 300 stores into a real estate investment trust-like entity that would sublet space to other brands.
J.C. Penney, based in Plano, Texas, rose 7 percent to $16.57 at 3:24 p.m. in New York, after reaching $17.17 for the biggest intraday jump since Sept. 19. The company was the biggest gainer in the Standard & Poor’s 500 Index.
A REIT operating under a separate name could be valued at about $40 a share, Omar Saad, an analyst at ISI Group in New York, wrote in a note Monday. The remaining J.C. Penney-branded business, with 800 stores, could be worth about $6 a share, he said.
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