DA Davidson Cuts Price Target on Pacific Sunwear (PSUN) Due to Lack of Cash Flow

DA Davidson is maintaining its Neutral rating on shares of Pacific Sunwear of California (NASDAQ: PSUN), but is lowering its price target by $0.50 to $3.00.

The firm notes that the lower price target reflects that the company's heavy promotional activity in teen-apparel retail which it believes is slowing Pac Suns effort to turn the business.

DA Davidson does believe that managements plan is working, just not at the pace that may be needed. The company reported its first positive comp quarter in Q1 with 1 percent, well needed since the last positive comp quarter was Q4 of 2007. The fact that PSUN did post a positive comp quarter in Q1, the firm has decided not to downgrade the company to Underperform.

For more ratings news on Pacific Sunwear of California click here and for the rating history of Pacific Sunwear of California click here.

Shares of Pacific Sunwear of California closed at $2.76 yesterday.

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