Needham & Company Reiterates a 'Hold' on Pacific Sunwear (PSUN); Lifeline Extended by Loan from Private Equity

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

Needham analyst says, "At ~0.1x P/sales and ~1.1x P/book, respectively PSUN is trading significantly below the sector averages of 0.9x and 2.9x. We applaud the announcement of 200 store closures by end of FY12 and believe the lifeline extended by experienced retail private equity investor Golden Gate Capital gives PSUN some breathing room to focus on improving merchandise and overall strategy. While both store environment and merchandise assortment continue to improve at PacSun, Holiday has gotten off to a slow start (QTD SSS down -3.0%) with Girls SSS turning negative in F3Q after positive SSS in F1H. We would like to see more evidence of stronger sales momentum before becoming more positive on the stock."

"We are raising our F4Q and FY11 LPS estimates to ($0.24) and ($0.82), respectively, up from ($0.30) and ($0.92). We are raising our F1Q, F2Q, F3Q, F4Q, and FY12 LPS estimates to ($0.23), ($0.04), $0.01, ($0.24), and ($0.50), respectively, up from ($0.26), ($0.07), ($0.03), ($0.30), and ($0.66)."

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 $1.35 yesterday.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Needham Reiterates Buy Rating on Amazon.com (AMZN), Raises Estimates
• CIMC Enric Holdings Ltd. (3899:HK) (CIMEF) PT Lowered to HK$8.70 at HSBC
• Lam Research (LRCX) PT Raised to $1,030 at Needham