Nomura Securities Maintains a 'Reduce' on Pacific Sunwear (PSUN); Cutting PT to $1

Nomura Securities maintains a 'Reduce' on Pacific Sunwear of California (NASDAQ: PSUN) price target cut in half to $1.00.

Nomura analyst, Paul Lejuez, said, "While we believe that back-to-school (BTS) sales in general were ok across the mall, we have less confidence in PSUN’s performance based on a soft start to the season and the level of price promotion/competition that we have seen in the teen sector specifically. Our $1 target price represents 0.1x our F11E sales (we expect PSUN to have negative EBITDA and EPS in F11 and F12). There is no change to our F11 EPS of ($0.92) or our F12 of ($0.68). We continue to expect 3Q comps down 6-8% and a loss of ($0.13)."

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 $1.24 yesterday.

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