Quiksilver shares up on analyst rating
Quiksilver Inc.'s shares jumped Monday after a Stifel Nicolaus analyst upgraded his rating on the surf-and-skate-inspired clothing company's shares.
THE SPARK: Analyst Jim Duffy upgraded his rating on Quicksilver's stock to "Buy" from "Hold" and set a $6 target price.
THE BIG PICTURE: Quiksilver, which owns Roxy, DC and its namesake brand, had been struggling with slower sales due to the tough economy and stiff competition. Over the last few quarters, it has been working to improve its sales and profitability.
Quiksilver has increased marketing, cut staff, lowered expenses and made some top management changes.
THE ANALYSIS: Quiksilver's recent changes could play out well for the company, according to Duffy.
The company's updated management could bring new energy to the company. Some leaders are also approaching deadlines in their restricted stock grants that would provide a strong incentive for them to get the stock price back up.
Duffy also said that early hints of stabilization in Europe and some lower administrative costs could improve Quiksilver's revenue and margin picture in 2013.
SHARE ACTION: Shares rose 38 cents, or 11 percent, to $3.78 by late afternoon. Its stock has been gaining fairly steading since mid-July when it hit a 52-week low of $2.09.
