ZQK Posts Strong Q1 Results; Target Price Raised

Analysts at Thomas Weisel Partners reiterate their "market weight" rating on Quiksilver Inc (NYSE: ZQK), while raising their estimates for the company. The target price for ZQK has been raised from $2 to $3.50.

Quiksilver reported its Q1 revenue and EBITDA ahead of the estimates. “A confident view on EBITDA growth potential for the year in combination with balance sheet improvement provides necessary head room for upcoming covenants. In addition, given the high degree of leverage, these factors have meaningful impact on the implied value of the equity,” the analysts say.

Thomas Weisel Partners has raised its EPS estimates for 2010 and 2011 from $0.01 to $0.08 and from $0.10 to $0.24, respectively.

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