D.A. Davidson Upgraded Skullcandy Inc. To Buy

In a report released Wednesday, D.A. Davidson analyst Andrew Burns upgrades Skullcandy Inc

from Hold to Buy while increasing its price target from $8 to $10 a share. Analyst at D.A. Davidson favor Skullcandy's core business stabilizing, influencing operating margin improvement by 12.20 percent, higher margin in-ear product, and expansion into Walmart stores. The D.A. Davidson note covering Skullcandy states the company benefiting from Wal Mart's recent announcement of $20 million with accretive margins over the next few years. D.A. Davidson $10 price target is based on a 10x EV/EBITDA multiple.