Shares of slumping Anaheim-based retailer Pacific Sunwear of California Inc. fell Friday after a change in sentiment from an analyst.
Friedman, Billings, Ramsey analyst Adrienne Tennant removed the operator of mall clothing stores from her list of “top picks” amid the softening economy.
Shares of Pacific Sunwear, which are down 50% in the past year, fell 4.5% in midday New York trading on Friday. The company has a market value of about $650 million.
Pacific Sunwear’s shares now are near a 52-week low.
“In the current climate, we do not believe any consumer discretionary apparel names should be on our catalyst-driven Friedman, Billings, Ramsey ‘Top Picks’ list,” Tennant wrote in a client note.
But Tennant kept an “outperform” rating on Pacific Sunwear, based on the company’s turnaround plans.
Pacific Sunwear runs stores selling clothes inspired by surfing, skateboarding and hip hop music.
The company is closing its lagging demo chain selling urban styles and a smaller shoe store chain to focus on its dominant PacSun surfwear stores.
