An analyst upgraded her rating on Huntington Beach-based clothing maker Quiksilver Inc. Monday on signs of a turnaround in sales at mall and other stores.
Claire Gallacher of San Diego-based Capstone Investments raised her rating from “hold” to “buy,” suggesting her clients should acquire shares of Quiksilver, which makes clothes inspired by surfing, skateboarding and snowboarding.
She has a price target of $4 on Quiksilver’s shares, which closed at about $3 Monday on a market value of nearly $400 million.
Quiksilver was upgraded based on inquiries with retailers that found little unsold Quiksilver clothes at their stores, the analyst said.
The company’s shares were up nearly 5% Monday on the upgrade and recent results from a retailer and another clothing maker.
The company’s stock has been helped by a report last week of strong sales at stores of Zumiez Inc., based in the Seattle area. The retailer reported an 11% gain in same-store sales, trouncing the 1% expected by analysts.
And last month, clothing maker Volcom Inc. of Costa Mesa beat Wall Street expectations with quarterly results and offered an upbeat outlook.
