UPDATE: J.P. Morgan Lowers J.C. Penney's PT

According to a research report published this morning, J.P. Morgan has lowered J.C. Penney's (NYSE: JCP) PT from $49 to $40.J.P. Morgan mentioned in the report, "JCPenney reported 1Q EPS of ($0.25) after the close with SSS (-18.9%), GPM (-114bps) and SG&A ($ -9.4%) all worse than expectations. While management delivered on their promise for transparency, the elimination of GAAP EPS guidance and dividend cut (given OCF down $577M) could weigh on credibility near term. While the negatives will clearly be the focus (sales, GPM, balance sheet), we were encouraged by the first signs of content changes (15 new brands) and subtle indications of sequential improvement (although at baby steps)."J.P. Morgan maintains its Overweight rating on J.C. Penney, which closed yesterday at $33.32.