Janney Montgomery Scott's Q2 Review on Pacific Sunwear (PSUN): Still Our High Beta/Speculation Play
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Price: $0.04 --0%
Rating Summary:
3 Buy, 6 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 17
Rating Summary:
3 Buy, 6 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 17
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Janney Montgomery Scott maintains a 'Buy' on Pacific Sunwear of California (NASDAQ: PSUN) price target of $3.00.
Analyst, Adrienne Tennant, said, "The company continued positive momentum across the board in 2Q12 and achieved a positive +5% comp, 260 basis points improvement in merchandise margins, lower occupancy costs and SG&A expenses, and lower inventory. The +5% comp for 2Q12, came in above Retail Metrics consensus at +1.6%, above the company’s comp guidance range of -1% to +4%."
"Similar to several other retailers and consistent with our checks, PSUN did note a softer start to BTS, implying that it may have started off the quarter towards the lower end of the guided comp range. However, also consistent with our checks, management noted that they have seen improvement the past week, mainly attributable to an uptick in traffic."
Tennant expects that the renewed line of credit, cash from Golden Gate and lease renegotiations/store closures will all improve liquidity and stabilize margins. Tennant says PSUN remains the firm's high beta/speculation play with an attractive risk/reward.
For an analyst ratings summary and ratings history on Pacific Sunwear of California click here. For more ratings news on Pacific Sunwear of California click here.
Shares of Pacific Sunwear of California closed at $2.17 yesterday.
Analyst, Adrienne Tennant, said, "The company continued positive momentum across the board in 2Q12 and achieved a positive +5% comp, 260 basis points improvement in merchandise margins, lower occupancy costs and SG&A expenses, and lower inventory. The +5% comp for 2Q12, came in above Retail Metrics consensus at +1.6%, above the company’s comp guidance range of -1% to +4%."
"Similar to several other retailers and consistent with our checks, PSUN did note a softer start to BTS, implying that it may have started off the quarter towards the lower end of the guided comp range. However, also consistent with our checks, management noted that they have seen improvement the past week, mainly attributable to an uptick in traffic."
Tennant expects that the renewed line of credit, cash from Golden Gate and lease renegotiations/store closures will all improve liquidity and stabilize margins. Tennant says PSUN remains the firm's high beta/speculation play with an attractive risk/reward.
For an analyst ratings summary and ratings history on Pacific Sunwear of California click here. For more ratings news on Pacific Sunwear of California click here.
Shares of Pacific Sunwear of California closed at $2.17 yesterday.
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