Pacific Sunwear Regains Sparkle; Shares Surge

After languishing for a few weeks, shares of Pacific Sunwear of California Inc. gained 17% Monday in a wave of investor enthusiasm following several ratings upgrades.

Shares of the Anaheim apparel company, which owns brands such as Stussy, Free People and Dr. Marten’s, rose $4.25 to close at $29.13 on Nasdaq.

Tucker Anthony Cleary Gull and Robertson Stephens brokerages upped their investment opinions. Wells Fargo Van Kasper upgraded its view last week.

Pacific Sunwear stock has lost about a third of its value since the end of February. The stock took a tumble in early March, when the company reported negative same-store sales and a slowdown in its men’s pants business.

At the same time, the company reported better-than-expected fourth-quarter earnings.

Mercedes Sanchez, analyst at Raymond James & Associates Inc., said the stock’s low price, coupled with an optimistic second-half outlook, gave analysts reasons to upgrade.

Robertson Stephens upgraded to “buy” from “long-term attractive,” citing improving sales trends, broadened merchandise assortments and improved management. Analyst Janet Kloppenburg expects the stock to hit $40 a share in 12 to 18 months.

Tucker Anthony analyst Steve Richter upgraded the stock to “strong buy” from “buy.”

Pacific Sunwear’s chief executive, Greg Weaver, and chief financial officer, Carl Womack, were traveling and couldn’t be reached for comment.