Jefferies Downgrades Skullcandy (SKUL) to Hold

Jefferies downgraded Skullcandy (NASDAQ: SKUL) from Buy to Hold with a price target of $5.00 (from $17.00) on reduced visibility following Q3 results.

Analyst Randal Konik commented, "We are lowering our rating on SKUL to Hold, as the company issued a weak 4Q outlook, driven by a number of items that should significantly delay the timing of a turn, including the re-positioning of int'l distribution & increasingly difficult compares. Plus, margin headwinds should persist near-term. Bottom line, this is a company in transition & it appears there is more work to do than we initially anticipated."

The firm cut FY 2015 EPS from $0.43 to $0.37 and FY 2016 EPS from $0.60 to $0.45.

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 $6.34 yesterday.

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