Jerash Holdings: DA Davidson Raises PT to $4, Maintains Buy Rating

Jerash Holdings: DA Davidson Raises PT to $4, Maintains Buy Rating

Jerash Holdings (JRSH) has received a significant boost from DA Davidson, which has raised its price target to $4 and maintained its buy rating. This positive outlook comes amidst a backdrop of global supply chain disruptions and geopolitical instability, particularly in the Middle East. DA Davidson's analysts believe that Jerash Holdings' strategic position in the region, coupled with its robust order pipeline, makes it a compelling investment opportunity.

Jerash Holdings recently reported its Q4 FY2025 financial results, showcasing significant year-over-year improvements in revenue and gross profit. The company's stock experienced a decline in pre-market trading, dropping 3.04% to $3.248, influenced by a net loss per share slightly below expectations. Despite this, the company remains optimistic about future growth, driven by strategic partnerships and capacity expansion [2].

DA Davidson's target price of $4 is based on a valuation multiple of 3.5x the company's estimated EBITDA for 2026. This reflects the firm's confidence in Jerash Holdings' ability to capitalize on the ongoing shift in global supply chains, which favors manufacturers with a strategic location in the Middle East [1].

The company's strong performance in Q4 FY2025, marked by a 35.6% increase in revenue and a 250% surge in gross profit, underscores its resilience and growth potential. The completion of a major factory expansion project in Jordan has further bolstered Jerash Holdings' production capacity, positioning it as a key player in the global apparel manufacturing sector [2].

However, DA Davidson acknowledges the challenges posed by ongoing logistics issues and geopolitical uncertainties. The company is actively working to mitigate these risks by rerouting shipments and strengthening its supply chain resilience strategies [2].

In conclusion, Jerash Holdings' strategic location, robust order pipeline, and strong financial performance make it an attractive investment opportunity. DA Davidson's positive outlook, coupled with the company's recent earnings report, suggests that investors may want to consider adding Jerash Holdings to their portfolios.

References:
[1] https://id.investing.com/news/stock-market-news/da-davidson-mempertahankan-peringkat-beli-untuk-saham-jerash-holdings-di-tengah-pergeseran-pasokan-93CH-2816112
[2] https://au.investing.com/news/transcripts/earnings-call-transcript-jerash-holdings-q4-2025-sees-improved-margins-stock-dips-93CH-3900002