Citigroup Inc. (NYSE:C) analyst Deborah L Weinswig is encouraged by recent managerial changes at J.C. Penney Company, Inc. (NYSE:JCP) but continues a Sell rating on the retailer and a price target over 12 months of $7.

J.C. Penney

Management changes in J.C. Penney

Internal promotions:

Out of six senior management positions that were filled by J.C. Penney Company, Inc. (NYSE:JCP) recently, five were drawn from the company itself.

Ken Mangone, currently EVP for Product Development, Design and Sourcing, will assume additional responsibility for Supply Chain.

Jan Hodges, who was SVP of Marketing, becomes SVP and GMM of Home.

Kirk Waidelich, currently VP of Marketing Strategy, will now oversee sales and promotions.

Kathryn Burchett, who was SVP of Corporate Initiatives & Partnerships, is named SVP of Property Development to direct real estate, construction, store design, new store growth, and store environment ops.

Scott Laverty, who was SVP of Business Solutions since Oct. 2012, is EVP and CIO as of Sept., responsible for overall vision, strategic direction, and tactical execution of IT systems.

External appointee:

David Jordan is appointed VP of Financial Planning and Analysis, reporting to CFO Ken Hannah. He was earlier VP of Finance at Radio Shack.

Citi’s view on the changes

Citigroup Inc. (NYSE:C) is pleased to see crucial management vacancies being filled, and that most of these positions have been filled by internal candidates.

“CEO Mike Ullman has his work cut out for him, but we think he is listening to everyone voicing concerns, and acting with his team to drive topline in an overall challenging environment as consumers live out our C.H.E.A.P. thesis.”

Price Target

Citi values J.C. Penney Company, Inc. (NYSE:JCP) at 0.45 x EV/2015 Sales Estimate giving a price target of $7.