DA Davidson lifted its price target on Jerash Holdings (NASDAQ: JRSH) to $5.00, citing a new reciprocal trade agreement that grants Jordanian apparel and textile exports full duty-free access to the United States. The upgrade arrives as the contract manufacturer reports record quarterly results and signals confidence in its Jordan-based production platform.
Jordan secured the tariff exemption in late July after a year of negotiations, complementing the 2001 U.S.-Jordan Free Trade Agreement. The deal removes all U.S. customs duties on Jordanian clothing and textile shipments, while lowering reciprocal tariffs on other Jordanian goods to 10%. Jordan's Minister of Industry, Trade and Supply called it a "historic qualitative leap" for the national economy.
Jerash, which operates manufacturing facilities in Jordan employing roughly 6,300 people, posted fiscal 2027 first-quarter revenue of $50.2 million, up 26.7% from $39.6 million a year earlier. Gross profit rose 35.7% to $8.3 million, pushing gross margin up 100 basis points to 16.4%. Operating income climbed to $2.6 million from $959,000, and net income surged more than fivefold to $1.7 million, or $0.13 per diluted share, versus $0.03 a year ago. The quarter beat consensus estimates of $0.10 EPS and $47.9 million in revenue.