UBS Maintains a 'Sell' on RadioShack Corp. (RSH); Skeptical on Turnaround Plan
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Price: $3.90 -2.74%
Rating Summary:
0 Buy, 8 Hold, 7 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 19 | Down: 21 | New: 29
Rating Summary:
0 Buy, 8 Hold, 7 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 19 | Down: 21 | New: 29
Trade RSH Now!
UBS maintains a 'Sell' on RadioShack Corp. (NYSE: RSH) price target of $2.00 (from $3.00).
Analyst, Michael Lasser, said, "If RSH were facing a real estate issue, it would probably be an easier challenge to solve. This isn’t the case. Its problem is more existential. It has tried to transition to a convenience & service oriented retailer of mobility products, but that has not resonated with consumers. Plus, its cost structure has not been altered in such a way that it can tolerate the different profit profile. These challenges will take quite some time to fix."
All together, Lasser is skeptical on the company's turnaround plan and there's a possibility of the company's deal with Target (NYSE: TGT) dissolving, considering that it's not a profitable relationship. RSH has a decent cash position, but improved financial performance is really the best path now. (FY12 EPS estimate cut from $0.25 to (0.15) and FY13 from $0.28 to $0.01)
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 $2.60 yesterday, with a 52 week range of $2.46-$16.25.
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Analyst, Michael Lasser, said, "If RSH were facing a real estate issue, it would probably be an easier challenge to solve. This isn’t the case. Its problem is more existential. It has tried to transition to a convenience & service oriented retailer of mobility products, but that has not resonated with consumers. Plus, its cost structure has not been altered in such a way that it can tolerate the different profit profile. These challenges will take quite some time to fix."
All together, Lasser is skeptical on the company's turnaround plan and there's a possibility of the company's deal with Target (NYSE: TGT) dissolving, considering that it's not a profitable relationship. RSH has a decent cash position, but improved financial performance is really the best path now. (FY12 EPS estimate cut from $0.25 to (0.15) and FY13 from $0.28 to $0.01)
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 $2.60 yesterday, with a 52 week range of $2.46-$16.25.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
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