UPDATE: Goldman Sachs Initiates Quiksilver at Neutral on Risk/Reward

Goldman Sachs initiated coverage on Quiksilver

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.