Nomura Securities Maintains a 'Reduce' on Pacific Sunwear (PSUN); 3Q Review

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

Nomura analyst, Paul Lejuez, said, "PSUN’s 3Q results were upstaged by their announcement of 175-200 stores closures (on a base of 820) planned over the next 14 months. To help cover store closing costs, the company received a 5-yr $100MM revolver through Wells Fargo (replacing their revolver that was due in April 2013) and a $60MM term loan from Golden Gate Capital. ~$13MM of the proceeds from the term loan will go towards buying out of ~75 leases ahead of natural expiration. We are raising our F11E from ($0.92) to ($0.82). While new liquidity and store closures are positives, PSUN is still struggling to reconnect with customers and post more consistent results, problems that are proving to be more difficult to fix than its recent liquidity issues."

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.

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