Quiksilver "buy," target price reduced

03/12/09 - Lazard Capital Markets

NEW YORK, March 12 (newratings.com) - Analysts at Lazard Capital maintain their "buy" rating on Quiksilver Inc (ZQK), while reducing their estimates for the company. The target price has been reduced from $6 to $3.

In a research note published this morning, the analysts mention that the company is expected to improve its capital structure by restructuring its debt or selling off one of its brands. Although Quiksilver’s core brands remain fundamentally strong and intact, the company’s near-term results may be hit by declining revenues, the analysts add. The EPS estimate for F2009 has been reduced from $0.40 to $0.24.