UPDATE: Piper Jaffray Reiterates Neutral Rating, Raises PT on Quiksilver Following Strategic Plan Announcement

In a report published Friday, Piper Jaffray analyst Erinn E. Murphy reiterated a Neutral rating on Quiksilver

, and raised the price target from $5.00 to $7.50. In the report, Murphy noted, “We are re-calibrating our multiple justification and raising our PT on ZQK to $7.50 following the company's announcement of their multi-year profit improvement plan which calls for an incremental $150M EBITDA by FY16, implying a doubling of FY12's EBITDA of $150M. This is predicated on a modest 2.5% sales CAGR and EBITDA margin of 13% (from 7.4% in FY12). Key to this strategy is i) an emphasis of brand portfolio optimization across its three core brands; ii) globalization of key functions and iii) an abating cost structure. We believe this announcement was likely anticipated and believe the share performance to-date reflects in part the optimism around recovery opportunities. We expect to hear more about this plan on ZQK's Q2 report in early June.” Quiksilver closed on Thursday at $7.46.