The stock price of J.C. Penney Company, Inc. (NYSE:JCP) is trading higher on Thursday despite growing concerns regarding its liquidity. The shares of the department store chain are trading around $10.81 per share, up by nearly 7 percent around noon on Thursday, in New York.

J.C. Penney

Yesterday, J.C. Penney Company, Inc. (NYSE:JCP) plummeted by 15 percent to $10.12 a share after an analyst at Goldman Sachs Group Inc (NYSE:GS) reported that the company need to take on additional debt to ensure that it has enough cash to keep its business operations going. Goldman Sachs analyst Kristin McDuffy noted that a “combination of weak fundamentals, inventory rebuilding, and an underperforming home department” could lead the company to liquidity problems in the third quarter.

J.C. Penney has “ample liquidity for 2013”

Today, Citigroup analyst Deborah Weinswig issued a note to investors indicating that J.C. Penney Company, Inc. (NYSE:JCP) has “ample liquidity for 2013.” However, she emphasized that the retailer “may need to raise capital to cushion against potentially challenging season” if it runs cash faster than estimates.

The analyst added that the turnaround effort of the company was taking longer than anticipated amid a weakening macro-economic environment. Weinswig reiterated her sell rating and reduced her price target for the shares of J.C. Penney Company, Inc. (NYSE:JCP) from $11 to $7 per share.

J.C. Penney issued a press statement

Prior to the opening of the stock market, J.C. Penney Company, Inc. (NYSE:JCP) issued a press statement emphasizing that the sales of the department store chain is growing, however, the management of the company did not address the underlying concerns of analysts regarding its liquidity.

The company’s press statement reads, “In response to inquiries, J.C. Penney Company, Inc. (NYSE:JCP) said today that it is pleased with its progress thus far in the company’s turnaround efforts and the traction its initiatives are starting to achieve.  Moreover, the company said it is starting to see greater predictability in its performance across many areas.”

“The company continues to be encouraged by improvements in purchase conversion both in store and on jcp.com, primarily due to being back in stock in key items and sizes the customer expects to find at J.C. Penney Company, Inc. (NYSE:JCP). Overall sales on jcp.com continue to trend double digits ahead of last year.”

J.C. Penney Company, Inc. (NYSE:JCP) is also anticipating that its comparable store sales trends in the third and fourth quarters of 2013 will be positive.

On the other hand, Brian Sozzi, CEO and chief equities strategist of Belus Capital Advisors commented that J.C. Penney Company, Inc. (NYSE:JCP)’s press statement lacks “hard numbers”. According to him, “the shock and awe of seeing them raise more money,” drove the stock downwards. He added, “That might be the last money they can raise.”

J.C. Penney Company, Inc. (NYSE:JCP) is trying to raise as much as $1 billion in new equity, according to Reuters.