UPDATE: DA Davidson Raises Target to $26 on Skullcandy
DA Davidson increases its price target on Buy-rated Skullcandy (NASDAQ: SKUL) by $4 to $26 as it rolls estimates over to 2013.
DA Davidson says, "We expect Skullcandy to solidify its position as a leading headphone brand in 2012. We are encouraged by 4Q results and initial 2012 outlook that calls for 18%-27% revenue growth after impressive 45% topline growth in 2011. ...Our revised target is based on 18.0x our 2013 EPS estimate of $1.43. We continue to believe current valuation does not adequately reflect the brand's substantial growth prospects."
SKUL closed at $15.86 a share yesterday.
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