UPDATE: Piper Jaffray Reiterates Neutral Rating, Lowers PT on Pacific Sunwear of California

In a report published Friday, Piper Jaffray & Co. reiterated its Neutral rating on Pacific Sunwear of California

, but slightly lowered its price target from $2.50 to $2.00. Piper Jaffray noted, “We are maintaining our Neutral rating on PSUN shares following the company's holiday sales update. While sales results were largely in line, margins contracted on increased promotional activity. With a backdrop of a maturing action sports lifecycle trend, we believe sales volatility and margin pressure are likely to continue throughout 2013. We believe shares appropriately reflect risk, but may trade lower if fundamentals continue to deteriorate. This risk is balanced by cost actions (including store closures) taken by the company, which help to minimize operating deleverage.” Pacific Sunwear of California closed on Thursday at $1.86.