Roth Capital Maintains Neutral On Quiksilver Following New Licensing Agreements
In a research note released yesterday, Roth Capital analyst Dave King maintained coverage with a Neutral rating on shares of Quiksilver Inc. (ZQK) and a $4 price target, following yesterday’s news that Quiksilver entered into licensing agreements for several product categories, including Roxy young girls and children’s apparel, watches and socks/legwear, as well as other product categories including luggage, beach towels and surfboards. All products will be available in Quiksilver retail stores and online.
“We believe extending the brand to additional categories through licensing will help generate positive cash flow and support Quiksilver’s growth strategy in its core segments and help elevate the brands. We continue to wait for signs of a turn in revenue now that expense cuts are seemingly less of a management priority. We remain concerned by the company’s significant debt load, but covenants do not appear overly onerous and we are encouraged by recent insider buying”, King noted.
According to TipRanks.com, which measures analysts and bloggers success rate based on how their calls perform, analyst Dave King currently has a one-year average return of 4.2% and a 45% success rate. King is ranked #1487 out of 3211 analysts.