Wachovia is no longer hyped on Pacific Sunwear. So they’ve knocked the mall retailer down a notch from Outperform to Market Perform
Until now, our thesis had been predicated on improvements in merchandising, coupled with new operating efficiencies. However, we believe the assortment is losing focus, evidenced by too much color overall and an overinvestment in the weak-trending fleece category.
It’s kind of laughable that Wachovia would have any opinions about the market when they can’t even run their own business. But they’re still giving the stock a valuation range of $5-6. PSUN is now trading at $4.98.
[Link: StreetInsider.com]
