NEW YORK (TheStreet) -- Shares of J.C. Penney Co., Inc. (JCP) are currently down -3.08% to $8.81.
While saying it was sitting on the sidelines for now, Sterne Agee said it was remaining "neutral" on the retailer and that it didn't have a price target.
However, as the firm is "concerned structurally on Penney's position in the retail food chain, we see a scenario where the stock could rally in the near term."
Their views were in Barron's "Hot Research" feature.
"We see signs that traffic is improving for Penney, which, in the near term, should help boost sentiment on shares, particularly if we hear positive commentary about April-May trends.
"Still, as cash continues to flow out of the coffers, investors should continue to scrutinize the turnaround, and keep in mind that, save another capital infusion, sales trends need to accelerate quickly to avoid low liquidity levels by third-quarter 2015," the firm said.
TheStreet Ratings team rates PENNEY (J C) CO as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate PENNEY (J C) CO (JCP) a SELL. This is driven by a few notable weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk, disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself and poor profit margins."