Analyst: Credit woes could affect Pep Boys' shares

An analyst for RBC Capital Markets said Wednesday that the already struggling shares of Pep Boys _ Manny, Moe & Jack could take an additional hit from the ongoing turmoil in the lending industry.

Scot Ciccarelli said that following last week's sell-off stemming from the company's weak fiscal second-quarter results, Pep Boys shares are currently trading at or close to real estate value.

"However, given the continued turmoil in the credit markets and the resulting impact it is likely to have in the commercial real estate sector, we believe this could reduce the amount of cash the company could generate through sale-leaseback transactions," Ciccarelli wrote in a note to investors.

The result could put even more pressure on Pep Boys shares, the analyst said.

Pep Boys shares are down about 33 percent since the company reported its second-quarter results on Sept. 8.

In Wednesday afternoon trading, Pep Boys shares dropped another fell 17 cents, or 2.7 percent, to $6.17, after falling as low as $6.11 earlier in the day.