Why Quiksilver Shares Jumped

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of surf-inspired apparel-maker Quiksilver (NYSE: ZQK  ) were riding the perfect wave today, jumping as much 11% today on an upgrade from Stifel Nicolaus.

So what: The investment house raised its rating from "Hold" to "Buy," giving Quiksilver a $6 price target on "hints of stabilization" in Europe that it believes could boost revenue and margins in the coming fiscal year. In September, Quiksilver shares jumped 17% on its last quarterly report, though it has given back some of those gains since then, an indication of uncertainty about the stock.

Now what: A single upgrade usually isn't enough to send shares climbing like this, but Quiksilver, which is also the parent of Roxy and DC brands, has been looking for some good news for a while. This is still primarily a turnaround story, as shares are well off of pre-recession highs. The company's debt load is worth more than its market cap, and revenue crept only 2% higher in its last quarter. Shareholders can take some comfort in knowing Stifel Nicolaus sees things their way, but I'd rather be convinced by hard numbers.

Want to keep track of this stock? Add Quiksilver to My Watchlist.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

DocumentId: 2096425, ~/Articles/ArticleHandler.aspx, 4/16/2014 4:28:44 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement