UPDATE: Piper Jaffray Upgrades Pacific Sunwear of California to Overweight Following Teen Survey

In a report published Wednesday, Piper Jaffray analyst Stephanie S. Wissink upgraded the rating on Pacific Sunwear of California (NASDAQ: PSUN) from Neutral to Overweight, and slightly raised the price target from $2.50 to $3.00.In the report, Wissink noted, “We are upgrading shares to Overweight following the results of our Spring 2013 Taking Stock With Teens Survey, which pointed to improved mindshare and validation of the company's strategic evolution as a lifestyle and fashion retailer. The demand curve for branded action sports product continues to crest with moderating rates of growth, but through a more fashion focused (boutique) assortment, PacSun is (re)capturing its core customer. Our thesis is predicated on sustained market share improvement and an accelerated timeline to profitability. We are tweaking our estimates slightly higher, now calling for the company to turn profitable in 2014. Given improved demand, merchandise balance, store rationalization, and corporate cost realignment efforts, we've increased our target multiple from 0.2x to 0.25x, arriving at $3/share (0.25x FY14 sales/share).”Pacific Sunwear of California closed on Tuesday at $2.25.