Griffin Securities Downgrades RadioShack (RSH) to Hold; Two Main Concerns
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Price: $0.24 --0%
Rating Summary:
0 Buy, 9 Hold, 5 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 15 | Down: 11 | New: 13
Rating Summary:
0 Buy, 9 Hold, 5 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 15 | Down: 11 | New: 13
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Griffin Securities downgraded RadioShack (NYSE: RSH) from Buy to Hold, price target slashed from $20 to $8.
Griffin analyst says, "Our concerns revolve around 2 issues. The first being Sprint (NYSE: S), a wireless carrier that has been in RSH stores since the latter-half of the 1990's. This is the third straight quarter of disappointing results emanating around Sprint...Our second concern is the decline in gross margins from 41% to 35% despite comp sales increasing 2% through the 4Q ’11. We all understand wireless mobility sales will cause gross margins to decline overall, but the magnitude of the decline signals other competitive pressures, i.e. sales promotions greater than we had expected. In the following week we plan to issue a more detailed report."
Griffin sees FY11 EPS estimate of $0.80 and FY12 of $0.51.
For an analyst ratings summary and ratings history on RadioShack click here. For more ratings news on RadioShack click here.
Shares of RadioShack closed at $10.23 yesterday.
Griffin analyst says, "Our concerns revolve around 2 issues. The first being Sprint (NYSE: S), a wireless carrier that has been in RSH stores since the latter-half of the 1990's. This is the third straight quarter of disappointing results emanating around Sprint...Our second concern is the decline in gross margins from 41% to 35% despite comp sales increasing 2% through the 4Q ’11. We all understand wireless mobility sales will cause gross margins to decline overall, but the magnitude of the decline signals other competitive pressures, i.e. sales promotions greater than we had expected. In the following week we plan to issue a more detailed report."
Griffin sees FY11 EPS estimate of $0.80 and FY12 of $0.51.
For an analyst ratings summary and ratings history on RadioShack click here. For more ratings news on RadioShack click here.
Shares of RadioShack closed at $10.23 yesterday.
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