Radio Shack (RSH) Dividend in Jeopardy - Analyst

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Radio Shack's (NYSE: RSH) dividend is at risk of cut or elimination, as the company faces challenges due to an increasingly outdated store format and heightened competition within the wireless sector, according to Brian Nagel of Oppenheimer Equity Research. Nagel has maintained a cautious stance for Radio Shack's prospects, and he does not envision a fundamental turn in the foreseeable future.

Street EPS estimates for radio shack are too optimistic, in Nagel’s view. Given deteriorating free cash flow generation at RSH, he thinks the dividend is at risk of cut or elimination.

Oppenheimer has a Perform rating on Radio Shack and a $4.00 price target.

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 $4.17 yesterday, with a 52 week range of $4.05-$16.25.

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