Markets & Finance

Piper Jaffray Ups Opinion on Volcom

Piper Jaffray raised its investment recommendation on Volcom (VLCM) to outperform from market perform.

Analyst Jeffrey Klinefelter cited growing teen mindshare, strong order backlog, and a diverse product mix with exposure to wear-now apparel provide the company with top-line upside potential. After having just completed his fall 2005 survey tour, he believes Volcom is positioned to benefit from what continues to be a strong "boardsport" trend cycle. He's also encouraged by the company's order backlog, up 42.2% year over year. He believes strong backlog combined with solid sell-throughs at retail could result in upside to 25% to 30% second quarter revenue guidance and maintained his 85 cents 2005, $1.03 2006 earnings per share estimates, and $36 price target.

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