DA Davidson Upgrades Quiksilver (ZQK) to Buy While Noting Strong Top-Line Growth Potential
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Price: $0.46 --0%
Rating Summary:
1 Buy, 10 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
1 Buy, 10 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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DA Davidson upgraded shares of Quiksilver Inc. (NYSE: ZQK) today from its previous rating of Neutral to Buy and increased its price target from $3.75 to $5.00. Shares are trading up over 13.6 percent on the day.
The company released its fourth quarter results with earnings falling slightly short and sales topping expectations. The firm notes the earnings miss was partially due to a lower than modeled gross margin and higher expenses.
For fiscal 2012, management highlighted a difficult first half while the second half should be really strong. DA Davidson has cut its 2012 EPS and sales estimates from $0.24 and $2.059 billion to $0.20 and $2.057 billion. For fiscal 2013, the firm initiated its EPS and sales estimates at $0.30 and $2.15 billion.
An analyst at DA Davidson comments, "We are encouraged by two consecutive quarters of constant currency growth and guidance for continued momentum in FY12. With U.S. owned retail improvements, Roxy stabilizing, DC growth, Quiksilver product line extensions and emerging market growth all adding to Quiksilver’s growth rate, we believe a sustainable growth trajectory is well established at this point."
The company released its fourth quarter results with earnings falling slightly short and sales topping expectations. The firm notes the earnings miss was partially due to a lower than modeled gross margin and higher expenses.
For fiscal 2012, management highlighted a difficult first half while the second half should be really strong. DA Davidson has cut its 2012 EPS and sales estimates from $0.24 and $2.059 billion to $0.20 and $2.057 billion. For fiscal 2013, the firm initiated its EPS and sales estimates at $0.30 and $2.15 billion.
An analyst at DA Davidson comments, "We are encouraged by two consecutive quarters of constant currency growth and guidance for continued momentum in FY12. With U.S. owned retail improvements, Roxy stabilizing, DC growth, Quiksilver product line extensions and emerging market growth all adding to Quiksilver’s growth rate, we believe a sustainable growth trajectory is well established at this point."
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