Wedbush Downgrades RadioShack Corp. (RSH) to Underperform; Slashing Estimates as Losses Build.
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Price: $3.46 -3.35%
Rating Summary:
0 Buy, 8 Hold, 7 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 12 | Down: 19 | New: 22
Rating Summary:
0 Buy, 8 Hold, 7 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 12 | Down: 19 | New: 22
Trade RSH Now!
Wedbush downgraded RadioShack Corp. (NYSE: RSH) from Neutral to Underperform with a price target of $1.00 (from $4.50).
Analyst, Michael Pachter, said, "Downgrading and lowering our 12-month price target to $1.00 as losses grow from declining CE sales, and continued margin erosion, compounded by an ill-advised strategy to invest in growth. Our price target reflects our best guess at the brand equity and going-concern value for the business (around $300 million), net of the company’s net debt."
"We are decreasing our FY:12 revenue estimate to $4.3 billion from $4.4 billion, and our EPS estimate to $(0.50) from $0.50 to reflect lack of growth for the mobility segment impacted further by continued margin erosion, continued declines in its consumer electronics segment, and increasing costs driven by its rebranding initiative and international store expansion. We are decreasing our FY:13 revenue estimate to $4.2 billion from $4.4 billion, and our EPS estimate to $(0.20) from $0.45."
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 Pachter, said, "Downgrading and lowering our 12-month price target to $1.00 as losses grow from declining CE sales, and continued margin erosion, compounded by an ill-advised strategy to invest in growth. Our price target reflects our best guess at the brand equity and going-concern value for the business (around $300 million), net of the company’s net debt."
"We are decreasing our FY:12 revenue estimate to $4.3 billion from $4.4 billion, and our EPS estimate to $(0.50) from $0.50 to reflect lack of growth for the mobility segment impacted further by continued margin erosion, continued declines in its consumer electronics segment, and increasing costs driven by its rebranding initiative and international store expansion. We are decreasing our FY:13 revenue estimate to $4.2 billion from $4.4 billion, and our EPS estimate to $(0.20) from $0.45."
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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