UPDATE: Imperial Capital Ups Skullcandy Price Target After Strong Quarter, Up 6%

Robert Rosenhaus, Imperial Capital analyst announced Monday a price target increase for Skullcandy SKUL from $7 to $9 while maintaining their In-Line rating. The analyst touched on the fourth quarter numbers, highlighting net quarter sales of $72.2M, on par with an estimate of $72M; gross margins were 43.5%, slightly above the 43.1% estimate. The report notes upcoming Skullcandy activity in 2014 in which the company will capitalize on the women and sports performance categories. While Rosenhaus did explicitly say the over is not a short term catalyst, it's the start of something positive for long-term growth, "With new leadership in place, Skullcandy is in the midst of refocusing its brand and improving its operations with the goal of driving market share in the youth audio marketplace and realizing increasing profitability over time." SKUL is currently trading up 6% from it's previous close of $9.39, hovering around the $9.85 mark.