Jefferies Downgrades Skullcandy (SKUL) to Underperform on Rising Competition

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Jefferies downgraded Skullcandy (NASDAQ: SKUL) from Buy to Underperform and slashes its price target from $17 to $6 citing a lack of pricing power and increasing competition.

"The in-ear headphones which comprise over 60% of SKUL's revenues are under significant pressure from a variety of competitors, and we believe this trend will likely continue in coming quarters," the analyst comments. "And though SKUL is diversifying into more on-ear and over-ear headphones, these growth categories inherently carry lower margins."

For an analyst ratings summary and ratings history on Skullcandy click here. For more ratings news on Skullcandy click here.

Shares of Skullcandy closed at $8.08 yesterday, with a 52 week range of $7.70-$17.76.

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