Jerash Holdings: D.A. Davidson Maintains Buy Rating, Sets Price Target at $4.00

D.A. Davidson analyst Michael Baker reiterated a Buy rating for Jerash Holdings (US) with a $4.00 price target. Baker has a 4-star analyst rating and a 59.67% success rate. The company has a Moderate Buy analyst consensus rating with a $4.17 average price target. Jerash Holdings has a one-year high of $4.17 and a one-year low of $2.76.

D.A. Davidson analyst Michael Baker has reiterated a Buy rating for Jerash Holdings (US) with a $4.00 price target. Baker, who holds a 4-star analyst rating with a 59.67% success rate, has cited the company's strong performance in the first quarter of fiscal 2026 as the primary reason for the recommendation. The company's Moderate Buy analyst consensus rating is supported by an average price target of $4.17, with a one-year high of $4.17 and a one-year low of $2.76.

Jerash Holdings, a leading manufacturer of outerwear and other apparel, reported a notable miss on earnings per share (EPS) compared to analyst forecasts in its Q1 FY2026 earnings. The company announced an EPS of $0.03, which was below the expected $0.09. Despite this, the stock experienced an upward movement in pre-market trading, indicating a positive sentiment among investors [1].

The company's revenue for Q1 FY2026 was $39.6 million, down from $40.9 million in the same quarter last year. Gross profit increased by 31.2% to $6.1 million from $4.6 million in the same quarter last year, while operating income climbed to $959,000 compared to a loss of $829,000 in the same period last year. The company's net income was $324,000 or $0.03 per diluted share, compared to a net loss of $1.4 million or $0.11 per diluted share in the same quarter last year [2].

Baker notes that Jerash's manufacturing facilities in Jordan provide a competitive advantage due to lower tariffs compared to other production locations. The company has also benefited from improved efficiency following the resolution of previous shipping disruptions in the Middle East. Jerash is expanding its production capacity, positioning the company for accelerated sales and profit growth in upcoming quarters and into next year [1].

Jerash Holdings' revenue guidance for Q2 is expected to be approximately $40 million to $42 million, with a gross margin guidance for Q2 of approximately 15% to 16%. The company faces ongoing geopolitical instability in the region, which could impact future operations and expansion plans. Despite these challenges, Jerash Holdings continues to attract new business inquiries from global brands, indicating growing interest in its manufacturing capabilities and capacity [2].

References:
[1] https://www.investing.com/news/analyst-ratings/jerash-holdings-stock-price-target-reiterated-at-4-by-da-davidson-93CH-4189057
[2] https://finance.yahoo.com/news/jerash-holdings-us-inc-jrsh-070903959.html