Shares of clothing makers Quiksilver Inc. and Volcom Inc. rose Wednesday after some upbeat comments from an analyst.
An analyst at New York-based Jefferies & Co. started coverage on Quiksilver and Volcom with expectations of a rise in their shares.
Huntington Beach-based Quiksilver, the largest maker of clothes inspired by surfing, skateboarding and snowboarding, saw its shares close up 3.5% Wednesday to a market value of $630 million
Costa Mesa-based Volcom, which makes clothes inspired by surfing, skateboarding, snowboarding, art and music, rose nearly 3% to a market value of $440 million.
Quiksilver is undervalued because of the company’s recent debt issues and restructuring, according to the analysts.
Jefferies has a “hold” rating on the shares with a price target of $3.50. The company’s shares closed at $3.85 on Wednesday.
The analyst started coverage of Volcom with a “buy” rating and a price target of $22. The company’s shares closed at $18 on Wednesday.
Volcom has “the best balance sheet in retail,” the analyst said.
