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Barclays Maintains an 'Underweight' on RadioShack (RSH); 2Q Misses, Verizon (VZ) Announcement Positive

July 27, 2011 1:18 PM EDT
RSH Hot Sheet
Rating Summary:
    1 Buy, 8 Hold, 4 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 19 | Down: 16 | New: 82
Barclays maintains an 'Underweight' on RadioShack Corp. (NYSE: RSH) price target raised by $2 to $14.00.

Barclays analyst says, "RadioShack reported adjusted 2Q EPS of $0.31. This was $0.06 below our $0.37 estimate as well as consensus, which was also $0.37. Comps decreased (7.8)%, compared to +6.7% LY...Management stated that it is comfortable with the 2H range on the Street of $0.81 - $1.07. We maintain our 2011E EPS of $1.57, including $0.91 in 2H. We believe the benefits of the Verizon (NYSE: VZ) deal are unlikely to be realized until 2012; as such, we are raising our 2012E EPS to $1.72 to $1.75 to reflect the deal's anticipated accretion."

For more ratings news on RadioShack Corp. click here and for the rating history of RadioShack Corp. click here.

Shares of RadioShack Corp. closed at $15.69 yesterday, with a 52 week range of $12.28-$23.38.


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