Jerash Holdings Receives Continued 'Buy' Rating from DA Davidson

Jerash Holdings (JRSH) has received a continued "Buy" rating from DA Davidson, with a price target of $4.00. Analysts maintain confidence in the company's performance and potential. The average target price from 2 analysts is $4.50, indicating a 33.93% upside from the current price. The average brokerage recommendation is 2.0, indicating "Outperform" status. GF Value estimates a one-year value of $4.51, suggesting a 34.23% upside from the current price.

Jerash Holdings (JRSH), a leading manufacturer in the Middle East, has received a continued "Buy" rating from DA Davidson, with a price target of $4.00 [1]. The analyst, Michael Baker, remains confident in the company's strategic positioning and growth potential, despite recent challenges.

The average target price from two analysts is $4.50, indicating a 33.93% upside from the current price. Additionally, the average brokerage recommendation is 2.0, indicating an "Outperform" status. GF Value estimates a one-year value of $4.51, suggesting a 34.23% upside from the current price [2].

Jerash Holdings reported significant year-over-year improvements in revenue and gross profit during its Q4 FY2025, with revenue increasing by 35.6% to $29.3 million and gross profit surging by 250% to $5.2 million. Despite these positive results, the company's stock experienced a decline in pre-market trading, dropping 3.04% to $3.248, influenced by a net loss per share that slightly missed expectations [2].

The company's strategic position as a Middle East manufacturer allows it to benefit from the ongoing shift of brands and retailers moving their supplier base away from higher tariffed Asian countries. This shift has resulted in increased demand for JRSH’s manufacturing capabilities, as evidenced by new commitments from major clients like Walmart’s Sam’s Club division [1].

Despite some short-term challenges due to geopolitical tensions, such as port disruptions affecting forecasted results, the long-term outlook remains positive. The company’s recent capacity expansion and plans for further growth on owned land indicate a strong potential for future revenue increases. Additionally, the ability to wind down certain joint ventures suggests JRSH is gaining direct customer relationships, further solidifying its market position [1].

Looking ahead, Jerash projects Q1 FY2026 revenue between $38 million and $40 million, with a gross margin target of 15-16%. The company remains committed to a conservative growth strategy for FY2026 and has approved a quarterly dividend of $0.05 per share [2].

References:
[1] https://www.tipranks.com/news/ratings/strategic-positioning-and-growth-potential-drive-buy-rating-for-jerash-holdings-ratings
[2] https://au.investing.com/news/transcripts/earnings-call-transcript-jerash-holdings-q4-2025-sees-improved-margins-stock-dips-93CH-3900002