UPDATE: Stifel Downgrades Quiksilver On Wholesale Challenges, Strategy Shift

In a report published Tuesday, Stifel analyst Jim Duffy downgraded the rating on Quiksilver (NYSE: ZQK) from Buy to Hold, and removed the $9.00 price target.In the report, Stifel noted, “Our Buy thesis had been predicated on a presumption of underlying brand equity and capacity for margin and cash flow improvement from supply chain and SG&A rationalization. We were of the view that new leadership could harness this brand power with improved product, merchandising, and marketing efforts to return the business to growth. This thesis was back-stopped by perceived take-out value should execution to plan come off course.”Quiksilver closed on Monday at $5.79.