UPDATE: Goldman Sachs Reduces PT to $27 on JC Penney Company Following Executive Departure

Goldman Sachs reiterates its Neutral rating on JC Penney Company

and reduces its price target from $31 to $27. Goldman Sachs notes, "J.C. Penney announced that President Michael Francis will leave the company effective immediately. Ron Johnson, CEO, will assume responsibility for merchandising and marketing. While further details were not disclosed, we believe the departure likely suggests persistent weakness in top-line trends on the heels of 1Q's disappointing -19% comps. As such, we lower our FY12/FY13/FY14 EPS estimates to $1.05/$1.90/$2.40 from $1.45/$2.30/$2.78 to reflect our downwardly revised comps assumptions; moreover, we would expect shares to be pressured." JCP closed at $24.33 on Monday.