Quiksilver Stock Outlook
Raised by Wall Street Firm 0
Lazard Capital Markets doubled its price target on Quiksilver Inc‘s stock, saying the apparel maker would be helped by cost-cuts and a weaker dollar.
The company’s shares rose as much as 8 percent to $3.80 in early trade Monday on the New York Stock Exchange.
Lazard said it estimates second-quarter earnings of 5 cents a share, which it believes to be conservative. Quiksilver ( ZQK – news – people ) is scheduled to report results Monday after market close.
‘Our annual estimate assumes $40 million in cost saves, but Quiksilver noted … that there were still opportunities to eliminate redundancies in its global structure and to reduce costs in the Americas, which means a second cut could lead to higher guidance and raised estimates,’ the brokerage, which raised its price target to $6 from $3, said in a note to clients.
If Quiksilver manages to successfully restructure or refinance its debts, it would not be necessary for the company to mull over the sale of its brands, the brokerage, which has a ‘buy’ rating on the stock, added.
Quiksilver, which began making outdoor sports and surfing apparel in the 1970s, said in March it plans to sell some of its assets in an attempt to prop up liquidity.