UPDATE: Wedbush Lowering Price Target On Pacific Sunwear of California

Wedbush is lowering its price target on shares of Pacific Sunwear of California PSUN to $3.50 from $4 after it reported earnings. It has an Underperform rating on shares. In a note to clients, Wedbush writes, "With the stock down 15% within the past week (below WS Softlines Index of down 6.5%) and 40% YTD, we expect the stock to be flattish to up slightly with BTE Q1 comps partially offset by below-consensus Q2 guidance. While we are encouraged by the Q1 positive comps in the junior's business, we note the disappointing men's performance as well as overall softer May start as reasons for tempered excitement for a consistent turn. As PSUN continues to clear bloated inventories while tweaking its product mix, we expect a measured turnaround, particularly in the face of higher input costs of +SD in H2. With depleting cash of $0.11/share projected at F11-end vs. $0.52 LY, we are lowering our PT and maintaining UNDERPERFORM rating." Shares of PSUN lost 7 cents yesterday to close at $3.16.