NEW YORK (TheStreet) -- Skullcandy (SKUL) shares were upgraded to "neutral" from "underweight" by analysts at Piper Jaffray (PJC) with a $7.50 price target.
Skullcandy shares are up 3.5% to $8.02 in early market trading on Wednesday.
The improved outlook follows the firm's confidence in headphone maker's new product line.
"New products are selling well and the company is in a strong cash position. While we remain concerned about the longer term competitive dynamics in the industry, we think management has done an excellent job of cleaning up the distribution and improved focus across the organization," said analysts.
TheStreet Ratings team rates SKULLCANDY INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate SKULLCANDY INC (SKUL) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and weak operating cash flow."