How Will This Analyst Action Affect Skullcandy (SKUL) Stock Today?

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.

Must ReadWarren Buffett's 25 Favorite Stocks 

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

"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."

If you liked this article you might like

Fishing for Acquisition Candidates in a Shallow Deep-Value Pond

Is Kulicke & Soffa a Buyout Candidate?

Mill Road Capital Victorious in Skullcandy Bidding War

Is Uber Only Worth $28 Billion, Not $62.5 Billion? -- Tech Roundup

Insider Trading Alert - KSU, SKUL And UTEK Traded By Insiders