Skullcandy Stock Hit Hard By Morgan Stanley
It is pretty hard not to find a Skullcandy headphone display in any major retailer, but thanks to Morgan Stanley and some competitive issues with Monster, their prominence seems to be in question. With major retailers like Target; Radio Shack; and Staples all lowering the price of their Skullcandy earphones, stocks have been dropping from a 52 week high 19.75 per share to $13.11 at the time of this writing. A Morgan Stanley analyst Jay Sole “cut his rating on the stock to Equal Weight from Overweight, with a new price target of $15, down from $21”
Another reason cited is the expected improvement in Apple’s earphones due to be released with the new iPhone 5. Another reason for Skullcandy’s rating decline has to do with growth in the high end headphone market where Skullcandy does not do a good job against the likes of Bose and Beats.
Hopefully Skullcandy can bounce back and launch something new to catch consumers attention once again, if not their headphones could get harder to find on retailers shelves this Holiday Season.