Pacific Sunwear of California downgraded to "hold"

07/31/06 - BB&T Capital Markets

NEW YORK, July 31 (newratings.com) - Analysts at BB&T Capital Markets downgrade Pacific Sunwear of California Inc (PSUN) from "buy" to "hold," while reducing their estimates for the company.

In a research note published this morning, the analysts mention that the recent announcement by Volcom of Pacific Sunwear of California reducing its orders indicates either a slowdown in the sales trends or the company’s shifting focus towards private label assortments. The EPS estimates for FY06 and FY07 have been reduced from $1.63 to $1.59 and from $1.94 to $1.82, respectively, to reflect revised margin assumptions.