UPDATE: Deutsche Bank Lowers PT on JC Penney to $26

Deutsche Bank has published a research report on JC Penney

and has cut EPS estimates after the company reported Q1 results. In the report, Deutsche Bank writes, "While tempted to catch the falling knife, we're staying sidelined on JCP after doing our own autopsy on 1Q results. While we have a lot of respect for CEO Ron Johnson, we think it's plausible that SSS trends get worse before they get better (BTS/X-Mas; e.g. > promotional periods) putting our GAAP EPS of $0.85 at risk. Further, history has taught us (via WMT/TLB) that changing consumers' perception of what a 'store' signifies is very difficult to do . . . if not impossible. With all this in mind, we'll wait for (1) the next shoe to drop or (2) clear signs that the turnaround is on firm ground before getting involved." Deutsche Bank maintains its Hold rating and has lowered the price target from $38 to $26 on JC Penney, which is currently trading up $0.19 from yesterday's $26.46 closing price.