Anaheim retailer Pacific Sunwear of California Inc., which is in the midst of an on-again, off-again turnaround, got another vote of confidence from an analyst Monday.
David E. Turner of BB & T; Capital Markets upped his rating on Pacific Sunwear’s shares to “buy” from “hold.”
Turner Pacific Sunwear’s good inventory levels, better presentation of merchandise in stores and strong sales in the juniors and men’s categories.
Pacific Sunwear runs about 1,000 mall stores selling surfwear and urban clothes.
The company’s shares jumped about 5% Monday before pulling back. Pacific Sunwear has a market value of about $1.6 billion.
Back in March, the company saw similar comments from Banc of America Securities analyst Amy W. Noblin.
The company, struggling with fashion and merchandising missteps for the past year, saw a big jump in March sales at stores open at least a year. Then same-store sales slumped again in April. For May, they were up 6.4%.
Last month, Pacific Sunwear posted a loss for the quarter ended April 29.
Also in May, Pacific Sunwear named its interim boss for the past eight months, Sally Frame Kasaks, as its permanent chief executive.
“We believe turnaround efforts initiated within the last six to nine months are on the verge of delivering, contributing to a potentially powerful earnings momentum argument,” Turner of BB & T; Capital Markets wrote in a client note.
