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SKUL($6.83) shares getting lobotomized...


(DOW JONES) DJ MARKET TALK: Skullcandy Shares Becoming Increasingly Spooky

10:50 EST - While the broader stock market has cliff euphoria, Skullcandy
(SKUL) slunks to another new low as the headphone maker gets downgraded by
Jefferies to underperform on "a lack of pricing power and increasing
competition." It slashes its price target to $6 from $17 and cuts 2013 EPS
views nearly 1/4. "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," says
Jefferies. "And though SKUL is diversifying into more on-ear and over-ear
headphones, these growth categories inherently carry lower margins. We are
also concerned of SKUL losing market share" as higher prices have been
"offset by flattish/lower" volume. SKUL, halved the past 3 months, is down
12% today at $6.84. ([e-mail])
(END) Dow Jones Newswires
January 02, 2013 10:50 ET (15:50 GMT)
Copyright (c) 2013 Dow Jones & Company, Inc.
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