UPDATE: JP Morgan Downgrades JC Penney to Neutral on Fundamental Outlook

JP Morgan reduced its rating on JC Penney JCP from Overweight to Neutral and cut its price target from $30 to $20. JP Morgan noted, "We are downgrading JCPenney to Neutral from Overweight based on (1) more questions than answers on the long-term pricing/promotional structure (incentives, NOW Pricing, MSRP), (2) balance sheet composition increasingly unclear (WC vs. non-core asset sale drivers), and (3) lack of earnings support for potentially another year (JPM modeling $0.00 EPS in FY13 w/ risk if sales do not materialize)." JC Penney closed at $17.40 on Tuesday.