UPDATE: Jefferies Upgrades Skullcandy, Inc. to Hold, Raises PT to $8.00

Citing the company's stronger foundation and success thus far with a turnaround plan being executed by the new management team, Jefferies equity analyst Randal Konik, upgraded Skullcandy, Inc. SKUL from Underperform to Hold Tuesday morning. The analyst raised his price target from $7.00 to $8.00. The drivers behind this decision included better positioning in the market against key competitors including Sony, along with a favorable modification of its product distribution system. However, the path is long and arduous, and the relatively new management team (still growing) could experience trouble in executing the recovery plan. In terms of the distribution system modification, the report noted that “Management remains focused on continuing to refine distribution, which includes picking the right new partners, i.e. Walmart. We view SKUL's partnership with Walmart favorably as Skullcandy was previously one of the only audio/earphone brands not on Walmart's shelves and selling through Walmart significantly broadens the bottom of Skullcandy's distribution pyramid”.