UPDATE: Brean Murray Reiterates Buy Rating, Lowers PT for The Wet Seal

In a company update published earlier today, Brean Murray, Carret & Co., LLC reiterated its Buy rating for The Wet Seal, Inc.

, but lowered its price target from $5.00 to $4.00. Brean Murry said it made its decisions “after WTSLA reported in‐line (and preannounced) 1QFY13 EPS of $0.02 and missed the Street's expectations of $0.01 for 2Q, guiding 2QFY13 EPS of a loss of $0.03 to a loss of $0.06. That said, with long‐term profitability remaining the ultimate goal, management is currently focused on several key initiatives that are planned to drive stabilization into the brands in the near‐term such as immediate (and 3Q) assortment distortions, new planning and buying processes to ensure the desired breadth per style, as well as a 90‐day game plan targeted at planning, driving and conversion tactics both online and in‐store, and to social media. While we understand the frustration with regards to the slow turn, we believe net cash per share of $1.67 remains a huge positive. Our revised price target of $4.00 or 15.6X plus net cash per share reflects the multiple we believe Wet Seal deserves as a turnaround candidate.” The Wet Seal, Inc. closed yesterday at $2.86.