Tuesday, FBR Capital Markets initiated coverage of Quiksilver Inc. (ZQK) stock with a Market Perform rating and a price target of $2.
Analyst Eric Tracy noted that with the drag of the Rossignol acquisition out of the equation, the company can refocus its efforts on its apparel business and potentially drive improved profitability as macro conditions stabilize. The obvious overhang to fundamentals and the shares remains the company's high debt load.
The analyst said that Quiksilver faces several top-line headwinds: Macro and product trends are currently off-cycle for action sports, and Quiksilver and Roxy are mature brands. If sales can turn positive, however, then cost structure improvements should allow for a more normalized margin structure over the long term, which would enable Quiksilver to chip away at its debt.
With limited visibility, the analyst remains on the sidelines for now; however, deep value investors with longer-term time horizons looking for a laggard in the space may view this story attractively.
Currently, ZQK is down $0.14 or 6.11% and trading at $2.15.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.