Wedbush Upgrades Pacific Sunwear (PSUN) & Zumiez (ZUMZ) to Outperform

June 28, 2013 8:08 AM EDT Send to a Friend
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Price: $1.53 -1.29%

Rating Summary:
    5 Buy, 7 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 29 | Down: 43 | New: 4
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Wedbush upgraded Pacific Sunwear of California (NASDAQ: PSUN) from Neutral to Outperform with a price target of $4.00 (from $3.75). Zumiez (Nasdaq: ZUMZ) was also upgraded to Outperform, with a price target of $36 (from $30). Among other positive fundamentals, analyst Betty Chen made note of changing fashion trends.

"As noted by our Retail Specialists, current fashion trends of "Bohemian to Festival" are rooted in the "California lifestyle", typically associated with the surf market, explaining recent strength in girl's at retailers like Pacific Sunwear, Tilly's (NYSE: TLYS) and Zumiez (despite the retailer's disappointing May sales). This shift away from "traditional preppy" to "California lifestyle" is most evident at Pacific Sunwear where exclusives like "Los Angeles lifestyle" Brandy Melville and private label Kendall & Kylie offer a point of differentiation," said Chen.

"In addition, popularity of urban influences including skate and resurgence of rap music has driven momentum of brands like TrukFit by Lil’ Wayne and Odd Future, both carried at Zumiez," she added.

For an analyst ratings summary and ratings history on Pacific Sunwear of California (NASDAQ: PSUN) click here. For more ratings news on Pacific Sunwear of California click here.

Shares of Pacific Sunwear of California closed at $3.33 yesterday.


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