Piper Jaffray Reiterated Underweight and PT of $3.50 on Pacific Sunwear

Piper Jaffray reiterated its Underweight rating and price target of $3.50 on Pacific Sunwear PSUN after the company announced its quarterly results in line with analysts' expectations. In a research report published today, Piper Jaffray states, "PSUN reported FQ1 results that were in line with expectations: non-GAAP LPS of ($0.30) was within the company's guidance of ($0.29)-($0.35) and slightly better than our PJC estimate of ($0.31) and consensus estimate of ($0.33). Same-store sales of +1% were also better than expected and reflected improvement in the women's business. However, May has started off slow mainly due to cold, wet weather and the mall environment remains acutely competitive. While we do feel positive results from key strategic objectives (product, expense savings, marketing, improved footwear rollout, new management) are starting to take hold, consistent performance is far from achieved and will take awhile to be realized. We reiterate our Underweight rating, are raising our LPS estimates, but are leaving our $3.50 price target unchanged." In today's trading, Pacific Sunwear added 8.86% to its value and is currently trading at $3.44.