RadioShack Downgraded by Bank of America to “Neutral” (RSH)
RadioShack (NYSE: RSH) was downgraded by investment analysts at Bank of America from a “buy” rating to a “neutral” rating in a note issued to investors on Tuesday, TheFlyOnTheWall.com reports. They currently have a $4.00 target price on the stock, up from their previous target price of $3.50.
The analysts wrote, “We are downgrading RSH from Buy to Neutral as many of the positive catalysts that we had been predicating our Buy rating on are largely priced into the stock, in our opinion. Namely, RSH is exiting its loss-making partnership with Target and a new CEO has been named, which we think is important given the need for a change in its strategic direction. We are increasing our PO to $4.00 (based on 0.1x 2013E price/sales, from $3.50 on 0.08x prior) to reflect these positive changes, though we believe upside will be more limited until a clear strategic plan is presented, likely not until 2H13 at the earliest. As such, a Neutral is warranted in our view.”
Shares of RadioShack (NYSE: RSH) traded down 4.82% during mid-day trading on Tuesday, hitting $3.512. RadioShack has a 52 week low of $1.90 and a 52 week high of $6.67. The stock’s 50-day moving average is currently $3.24. The company’s market cap is $349.8 million.
RadioShack (NYSE: RSH) last posted its quarterly earnings results on Tuesday, February 26th. The company reported ($0.63) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.05) by $0.58. The company had revenue of $1.30 billion for the quarter, compared to the consensus estimate of $1.36 billion. During the same quarter in the previous year, the company posted $0.12 earnings per share. The company’s revenue for the quarter was down 6.5% on a year-over-year basis. On average, analysts predict that RadioShack will post $-0.44 earnings per share for the current fiscal year.
Several other analysts have also recently commented on the stock. Analysts at Goldman Sachs downgraded shares of RadioShack from a “neutral” rating to a “sell” rating in a research note to investors on Tuesday, March 12th. They now have a $2.75 price target on the stock, down previously from $2.90. Separately, analysts at Deutsche Bank reiterated a “hold” rating on shares of RadioShack in a research note to investors on Wednesday, February 27th. They now have a $2.50 price target on the stock. Finally, analysts at RBC Capital raised their price target on shares of RadioShack from $2.50 to $3.00 in a research note to investors on Wednesday, February 27th. They now have a “sector perform” rating on the stock.
Four investment analysts have rated the stock with a sell rating and ten have given a hold rating to the company’s stock. The company has an average rating of “Hold” and an average target price of $2.66.
RadioShack Corporation (NYSE: RSH) is engaged in the retail sale of consumer electronics goods and services through its RadioShack store chain.
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