Analysts Say Skullcandy Ripe For A Takeover

skullcandy_kazu_kokuboFollowing the 66% plunge in the price of Skullcandy shares over the past several months, Bloomberg reports that several analysts are predicting the company could become the target of a takeover bid from larger industry players such as Sony or Bose.

According to Bloomberg:

While increasing competition for in-ear headphones and the company’s move into lower-margin designs prompted the Jefferies downgrade on Jan. 2, Skullcandy shareholder Royce & Associates LLC says its brand may appeal to buyers such as Bose Corp. or Sony Corp. (6758) Even though Skullcandy’s revenue growth has slowed, the shares have fallen more than is justified and that might prompt a takeover, Roth Capital Partners LLC said.

“I don’t get the sense that management is wanting or would look to sell at these levels, but you can’t ignore that as being a possible outcome when the stock’s trading where it is and the value being as cheap as it is,” David King, a Newport Beach, California-based analyst for Roth Capital, said in a telephone interview.