UPDATE: KeyBanc Downgrades Skullcandy to Hold on Impaired Visibility

KeyBanc downgraded Skullcandy

from Buy to Hold and removed the price target of $19.00. KeyBanc noted, "A series of operational missteps, a changing business model, and now, the departure of CEO Jeremy Andrus further impairs near- and medium-term visibility. Competitive pressures continue to intensify within the space, which could further pressure the earnings model. As such, we are taking a more conservative view on estimates for the time being. A 6.6x 2012 P/E, compared to 20.7x P/E for the high growth retail peer group, is the least expensive in our coverage universe, but at this stage, earnings visibility is so limited that even an inexpensive valuation remains unattractive, in our view." Skullcandy closed at $6.61 on Thursday.