UPDATE: Morgan Stanley Reiterates on J.C. Penney as Soft Quarter Undermines Quick Recovery

In a report published Wednesday, Morgan Stanley analyst Kimberly C. Greenberger reiterated an Underweight rating on

, but lowered the price target from $6.00 to $4.00. In the report, Morgan Stanley noted, “While JCP reported its first positive quarterly comp since 2Q11, the month-to-month deceleration undermines the rapid recovery thesis. Sales need to accelerate to meet our below consensus forecast, which yields $700M 2014 cash burn and negative FCF until 2016. Reiterate UW.” J.C. Penney closed on Tuesday at $5.08.