Ahead of the Bell: Pacific Sunwear falls in premarket

Citi Investment Research analyst Kimberly Greenberger slashed Pacific Sunwear to "Sell" from "Buy" in a client note, saying her previous estimates were too optimistic following its April and first-quarter same-store sales release.

On Thursday, the Anaheim, Calif., company said its first-quarter same-store sales -or sales at stores open at least a year -fell 1 percent, while April same-store sales rose 4 percent, missing estimates. Same-store sales is an important metric for retailers because it measures growth at existing stores rather than newly opened ones.

Greenberger also lowered her price target to $9 from $14.50, meaning she expects the stock to lose 23 percent.

The stock fell 65 cents, or 5.6 percent, to $11.06 in premarket trading after closing down 48 cents, or 3.9 percent, to $11.71 on Friday.