UPDATE: Goldman Sachs Initiates Quiksilver at Neutral on Risk/Reward
Goldman Sachs initiated coverage on Quiksilver (NYSE: ZQK) with a Neutral rating and a $4 price target.
Goldman Sachs said, "This is a show-me story with an opportunity for ZQK to break through its three year trading range ($2-$5 per share) as a new CFO attempts to revive what we see as an under-earning, high quality brand portfolio. We are intrigued by the potential margin recovery story but await evidence of tangible financial discipline before becoming more constructive. … We see ZQK's brand value being unlocked in one of three ways: (1) a healthier macro environment, (2) sustained financial discipline or (3) a potential sale of the company as cited in the press."
Quiksilver closed at $4.01 on Wednesday.
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Tags: Goldman Sachs