RadioShack (RSH) Has Hands Tied But Turnaround Not Impossible
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Price: $3.93 -2%
Rating Summary:
0 Buy, 8 Hold, 7 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 19 | Down: 23 | New: 29
Rating Summary:
0 Buy, 8 Hold, 7 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 19 | Down: 23 | New: 29
Trade RSH Now!
RadioShack's problems are well known on Wall Street. Among other difficulties, the company's business model is built on the wireless market, a part of the economy described as "mature" by analysts at Goldman Sachs. This results in margin pressure.
But Radio Shack isn't without hope in the view of Goldman analyst Matthew J. Fassler. He thinks RadioShack management is "credible" and may offer hope.
"RSH has the opportunity for a turnaround under the new leadership, but with limited strategic opportunity, and limited financial flexibility, in our view."
"In the interim, the company has the resources to stay liquid through 2013 under our base case and downside scenarios, despite high leverage and minimal fixed charge coverage," said the analyst.
Goldman Sachs maintained a Neutral rating on RadioShack Corp. (NYSE: RSH) price target of $2.90.
For an analyst ratings summary and ratings history on RadioShack Corp. click here. For more ratings news on RadioShack Corp. click here.
Shares of RadioShack Corp. closed at $3.28 yesterday, with a 52 week range of $1.90-$7.28.
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But Radio Shack isn't without hope in the view of Goldman analyst Matthew J. Fassler. He thinks RadioShack management is "credible" and may offer hope.
"RSH has the opportunity for a turnaround under the new leadership, but with limited strategic opportunity, and limited financial flexibility, in our view."
"In the interim, the company has the resources to stay liquid through 2013 under our base case and downside scenarios, despite high leverage and minimal fixed charge coverage," said the analyst.
Goldman Sachs maintained a Neutral rating on RadioShack Corp. (NYSE: RSH) price target of $2.90.
For an analyst ratings summary and ratings history on RadioShack Corp. click here. For more ratings news on RadioShack Corp. click here.
Shares of RadioShack Corp. closed at $3.28 yesterday, with a 52 week range of $1.90-$7.28.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
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