UPDATE: Credit Suisse Reiterates on Quiksilver as Management Meetings Increase Conviction in Earnings Potential
In a report published Wednesday, Credit Suisse analyst Christian Buss reiterated an Outperform rating on Quiksilver (NYSE: ZQK), and raised the price target from $9.00 to $10.00.
In the report, Credit Suisse noted, “On Nov. 12th, we met with the Quiksilver CEO (Andy Mooney) and CFO (Richard Shields). The meetings left us more comfortable with the potential for margin recovery and an eventual return to low-single digit sales growth. We now have higher conviction that the company can drive low single-digit annual revenue growth over time and operating margin in the low-teens (from 4%), suggesting longer-term earnings power of $1.00 over the next five years.”
Quiksilver closed on Tuesday at $8.67.
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