Citi Analyst Says J.C.Penney is Facing Risks to its Q2 Comp Sales and its Top-Line

In a report published Wednesday morning, Citi analyst Deborah Weinswig said that management departures from J.C. Penney

show challenges to the company's second-quarter comp sales. While Weinswig reiterated her Neutral rating and $20 price target, she noted that she expects the company's comp sales to drop by 5 percent, and to see an EPS loss of $0.82. The company's failed focus on its home section was noted as one headwind, and that it will have to rely on a strong push for back-to-school sales in the second half of 2013. Following the report, JC Penney shares were down 1.37 percent to $15.88.