DA Davidson Starts Skullcandy (SKUL) at Buy, Sees 20% Revenue & 25% EPS growth through 2013
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Price: $6.35 --0%
Rating Summary:
5 Buy, 8 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 10 | Down: 16 | New: 19
Rating Summary:
5 Buy, 8 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 10 | Down: 16 | New: 19
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DA Davidson initiates coverage on shares of Skullcandy (NASDAQ: SKUL) with a Buy rating and $21 price target as the company posted solid results for its second quarter.
The headphone market rose 30 percent in 2010 due to the large rise in mobile devices. This has resulted in a trend for fashionable headphones and has helped with the company's growth. The firm believes that this will be a growth driver throughout 2011 and 2012.
Based on DA Davidson's segment growth estimates and its view that operating margins can modestly improve after 2011, it is forecasting 20 percent plus revenue growth and 25 percent EPS growth through 2013.
International sales fell 5 percent in 2010 and rose 83 percent over the first half of 2011. Skullcandy announced that they plan on finalizing acquisition of its sole European distributor’s distribution rights in the third quarter and the firm sees strong European growth as a result.
DA Davidson released its third quarter revenue and EPS estimates at $51.6 million and $0.12. For 2011, the firm is estimates $218.9 million in revenue and $0.92 in EPS. For 2012, they forecast $267.0 million in revenue and $1.16 in EPS.
An analyst at DA Davidson comments, "We believe nearterm revenue growth momentum, especially in a low-growth environment, will increase investor interest in Skullcandy shares. As the company validates its business model and growth prospects with quarterly results, we believe shares can appreciate from current levels."
For more ratings news on Skullcandy click here and for the rating history of Skullcandy click here.
Shares of Skullcandy closed at $14.88 yesterday.
The headphone market rose 30 percent in 2010 due to the large rise in mobile devices. This has resulted in a trend for fashionable headphones and has helped with the company's growth. The firm believes that this will be a growth driver throughout 2011 and 2012.
Based on DA Davidson's segment growth estimates and its view that operating margins can modestly improve after 2011, it is forecasting 20 percent plus revenue growth and 25 percent EPS growth through 2013.
International sales fell 5 percent in 2010 and rose 83 percent over the first half of 2011. Skullcandy announced that they plan on finalizing acquisition of its sole European distributor’s distribution rights in the third quarter and the firm sees strong European growth as a result.
DA Davidson released its third quarter revenue and EPS estimates at $51.6 million and $0.12. For 2011, the firm is estimates $218.9 million in revenue and $0.92 in EPS. For 2012, they forecast $267.0 million in revenue and $1.16 in EPS.
An analyst at DA Davidson comments, "We believe nearterm revenue growth momentum, especially in a low-growth environment, will increase investor interest in Skullcandy shares. As the company validates its business model and growth prospects with quarterly results, we believe shares can appreciate from current levels."
For more ratings news on Skullcandy click here and for the rating history of Skullcandy click here.
Shares of Skullcandy closed at $14.88 yesterday.
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