UPDATE: Citigroup Upgrades J.C. Penney

In a note released Tuesday, Citigroup analyst Oliver Chen Upgraded

from Neutral to Buy and raised the price target from $7.50 to $11. Chen attributes his positive view of J.C. Penney to the company "going back to the basics." Chen believes this move will lead the company to meet fiscal year 2014 guidance and deliver positive comp store sales. Describing this move Chen stated, "In our view, JCP is not taking substantial fashion risk but just going back to what worked before & marketing to drive prudent traffic." Chen continued by outlining three key factors he feels will drive comp store sales and "healthier margins": 1) a revamped home department 2) fixing the kids department 3) fixing the mix of private, exclusive, and national brand merchandise. Chen concluded by addressing the issue of liquidity, "Investor fears remain on JCP's liquidity position which we believe are overdone." At last check J.C Penney was trading up ~5.5 percent at $8.88.