RadioShack Corp. Downgraded to Underperform at Zacks (RSH)
RadioShack Corp. (NYSE:RSH) was downgraded by Zacks from a “neutral” rating to an “underperform” rating in a note issued to investors on Monday, American Banking and Market News reports. They currently have a $3.00 target price on the stock. Zacks‘ price objective suggests a potential downside of 9.37% from the stock’s previous close.
Zacks‘ analyst wrote, “We downgrade our recommendation on RadioShack to Underperform ahead of its third quarter of 2013 financial results. The nightmare of RadioShack persists as the company continues to perform disappointingly. This somber condition is primarily due to weakness in the company’s postpaid wireless business. RadioShack’s core Consumer Electronics retail business is on a secular downtrend. Consumers now prefer purchasing online to visiting retail stores. Declining foot traffic has severely affected RadioShack’s business. Most of the consumers prefer tablets and smartphones, which are less profitable for the retail industry. Moreover, the retail industry has become more competitive. Management suspended its dividend payment in order to reduce the company’s debt burden. We do not find any immediate growth catalyst and consequently do not expect the company to achieve profitability anytime soon.”
RadioShack Corp. (NYSE:RSH) traded up 0.60% during mid-day trading on Monday, hitting $3.33. The stock had a trading volume of 660,972 shares. RadioShack Corp. has a 1-year low of $1.90 and a 1-year high of $4.36. The stock’s 50-day moving average is $3.54 and its 200-day moving average is $3.33. The company’s market cap is $332.0 million.
RadioShack Corp. (NYSE:RSH) last released its earnings data on Tuesday, July 23rd. The company reported ($0.53) earnings per share for the quarter, missing the analysts’ consensus estimate of ($0.24) by $0.29. The company had revenue of $845.00 million for the quarter, compared to the consensus estimate of $814.56 million. During the same quarter last year, the company posted ($0.21) earnings per share. RadioShack Corp.’s revenue was down .5% compared to the same quarter last year.
Other equities research analysts have also recently issued reports about the stock. Analysts at Oppenheimer reiterated a “market perform” rating on shares of RadioShack Corp. in a research note to investors on Monday, August 19th. Separately, analysts at RBC Capital cut their price target on shares of RadioShack Corp. from $3.00 to $2.50 in a research note to investors on Wednesday, July 24th. They now have a “sector perform” rating on the stock. Finally, analysts at Wedbush reiterated an “underperform” rating on shares of RadioShack Corp. in a research note to investors on Friday, July 12th. They now have a $1.00 price target on the stock. Four investment analysts have rated the stock with a sell rating and eight have given a hold rating to the company. The stock currently has an average rating of “Hold” and an average price target of $2.36.
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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