UPDATE: RadioShack (RSH) Downgraded to Sell at UBS; Sees Current Path 'Unsustainable'
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Price: $3.92 -2.24%
Rating Summary:
0 Buy, 8 Hold, 7 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 21 | Down: 24 | New: 29
Rating Summary:
0 Buy, 8 Hold, 7 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 21 | Down: 24 | New: 29
Trade RSH Now!
(Updated - July 24, 2012 2:02 PM EDT)
An analyst at UBS downgraded RadioShack Corp. (NYSE: RSH) from Neutral to Sell Tuesday morning, also cutting the price target on the stock from $4.40 to $3.
The firm cited "combination of poor fundamental trends, questions about strategic direction, vacancies of key executive positions, and uncertain capital outlook will weigh on RSH’s shares." UBS also suggested RadioShack reduce its quarterly dividend: "With the stock trading at a 13.5% yield, we believe it’s not getting credit for this payment anyway and the capital would be better utilized by investing in the stores."
The firm's note comes ahead of second-quarter results from RadioShack on Wednesday. The Street is currently looking for quarterly earnings of 4 cents per share on sales of $971.5 million.
With shares of RadioShack last trading down 4 percent to $3.54, UBS's new price target represents potential downside of about 15 percent.
For an analyst ratings summary and ratings history on RadioShack Corp. click here. For more ratings news on RadioShack Corp. click here.
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An analyst at UBS downgraded RadioShack Corp. (NYSE: RSH) from Neutral to Sell Tuesday morning, also cutting the price target on the stock from $4.40 to $3.
The firm cited "combination of poor fundamental trends, questions about strategic direction, vacancies of key executive positions, and uncertain capital outlook will weigh on RSH’s shares." UBS also suggested RadioShack reduce its quarterly dividend: "With the stock trading at a 13.5% yield, we believe it’s not getting credit for this payment anyway and the capital would be better utilized by investing in the stores."
The firm's note comes ahead of second-quarter results from RadioShack on Wednesday. The Street is currently looking for quarterly earnings of 4 cents per share on sales of $971.5 million.
With shares of RadioShack last trading down 4 percent to $3.54, UBS's new price target represents potential downside of about 15 percent.
For an analyst ratings summary and ratings history on RadioShack Corp. click here. For more ratings news on RadioShack Corp. click here.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
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