UPDATE: Deutsche Bank Upgrades JC Penney to Hold

Deutsche Bank has published a research report on JC Penney Company

upgrading the company from Sell to Hold looking to the company's possible rough road into 2012. In the report, Deutsche bank writes, "Watching KSS has taught us the industry's hi-low promotional strategy may have hit a ceiling. In other words, today's shopper is more savvy than ever and retailers need to transform in order to compete more effectively - potentially discarding old habits to drive traffic. With this in mind, JCP's move to EDLP is intriguing to us and if Ron Johnson can successfully make the change, we think others in the industry could follow. Importantly, we still think the duration to turn JCP around is a 2014/2015 event, but prefer to watch from the sidelines." Deutsche Bank has also raised the price target from $22 to $32 on JC Penney, which is currently trading down $0.31 from Friday's $34.96 closing price.