NEW YORK (TheStreet) -- J.C. Penney Co. (JCP - Get Report) stock price target was raised to $12 from $14 at Deutsche Bank as the retailer's fundamentals improve. The firm reiterated its "buy" rating on the stock.

Shares of Plano, TX-based J.C. Penney are up 0.87% to $11.65 in early morning trading on Friday.

"Shares of JCP have sky rocketed YTD (up 73.4% vs. SPX down 2.7%) and to what extent that move is due a short cover rally (short interest is 32.5% of the float) or from the fundamental story gaining traction is still very much a debate," Deutsche Bank said in an analysts note this morning.

J.C. Penney's stock continues to be heavily shorted because of concerns that lower spending will eventually hurt same store sales and reduce the retailer's competitiveness, or that top-line growth will weaken because of tougher comparable figures, analysts noted.

"We believe this view is missing the big picture... JCP is taking market share from peers which likely include other department stores as well as specialty apparel players, many of whom are closing doors at an accelerated pace," analysts explained.

Separately, J.C. Penney has a "hold" rating and a letter grade of C- at TheStreet Ratings because of the company's strengths, such as solid stock price performance, revenue growth and good cash flow from operations, and its weaknesses, including unimpressive growth in net income, generally higher debt management risk and poor profit margins.

You can view the full analysis from the report here: JCP

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.