Needham & Company Reiterates a 'Hold' on Pacific Sunwear (PSUN); Better than Expected with SSS +1%, but a Slow Start to BTS

Needham & Company reiterates a 'Hold' on Pacific Sunwear of California (NASDAQ: PSUN).

Needham analyst says, "At ~0.1x P/sales and ~0.7x P/book, respectively PSUN is trading significantly below the sector averages of 0.8x and 2.6x. While both store environment and merchandise assortment continues to improve at PacSun, BTS has gotten off to a slow start and likely running down – MSD% to –HSD% due to a competitive promotional environment. We would like to see more evidence that a margin recovery is underway or stronger sales momentum, before we become more positive on the stock."

"We are reducing our F3Q, F4Q, and FY11 LPS estimates to ($0.14), ($0.30), and ($0.92), respectively, down from ($0.04), ($0.23), and ($0.80)...We are adjusting our F2Q, F3Q, F4Q, and FY12 LPS estimates to ($0.07), ($0.03), ($.030), and ($0.66), respectively, from ($0.18), $0.04, ($.015), and ($0.55)."

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 $2.17 yesterday.

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