UPDATE: Jefferies Maintains Buy, Lowers PT on Quiksilver; Catalysts Lacking

Jefferies reiterates its Buy rating on Quiksilver

and cuts its price target from $5.50 to $4. Jefferies comments, "At $2.50, we believe that Quiksilver's portfolio of globally recognized brands is undervalued. However, a strong valuation case has been overwhelmed by European exposure and takeout obstacles (30% interest by top shareholder). We expect ZQK to miss EPS when it reports 2Q Thursday (after-close) but believe the stock gets interesting in 2H as distribution growth and lower cotton costs drive accelerated EPS growth." ZQK closed at $2.53 on Monday.