Quicksilver upgrade pays off on the trading floor

Tuesday left Quiksilver, Inc. (NYSE:ZQK)

aiming for better times after analyst B. Riley upgraded the stock to "buy" and set a new price target of 9.25 dollars. As recalled by ‘Motley Fool’, Quiksilver, Inc. experienced 75 million dollars in negative free cash flow over the past year.

The surfwear company’s stock entered the laggards within the FashionUnited Top 100 Index as well, even it closed up about 3 percent on Tuesday to a market value of 1.15 billion dollars, after Los Angeles-based B. Riley & Co. upgraded the company's stock from "neutral" to "buy".

Quiksilver released details of its so-called “Multi-Year Profit Improvement Plan” last month. The master plan sets the focus on growth of Quiksilver’s core brands Roxy, Quiksilver and DC with a goal of doubling earnings before interest, taxes, depreciation and amortisation to 300 million dollars by 2016. The plan also calls for a compounded annual growth rate of 2.5 percent on revenue as the plan is carried out.

In Europe, both LVMH and Hermès traded at rise, closing Tuesday with quite humble gains. The French luxury moguls have been involved in the last chapter of a bitter row that started last year when LVMH unveiled its increasing stake in the Birkin handbags maker.

Elsewhere, Adidas Group China, a unit of German sporting goods giant Adidas AG, said on Tuesday it is continuing its core business despite intensive competition from "fast fashion" brands. "We will stick to our roots in athletic performance in the future, which accounts for around 80 percent of our sales," said Sabrina Cheung, corporate communication director for Adidas Greater China.

Cheung said their NEO and Original lines may have some competition with street fashion brands, such as Diesel, or fast fashion brands, including Spanish Zara, but Adidas will maintain their sports performance roots.