Barclays Sees RadioShack (RSH) Eliminating/Slashing Dividend; Cuts Target to $3 Ahead of Q2 Report
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Price: $0.24 --0%
Rating Summary:
0 Buy, 9 Hold, 5 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 9 | Down: 14 | New: 50
Rating Summary:
0 Buy, 9 Hold, 5 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 9 | Down: 14 | New: 50
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Investors should watch shares of RadioShack (NYSE: RSH) closely Tuesday as Barclays' Alan Rifkin issued some concerning comments earlier.
The analyst is modeling for a "significant" dividend reduction from the company, pointing out RadioShack has "seasonal" cash needs and $375 million in debt maturing at the end of August of next year. Rifkin believes the company will either eliminate the dividend or slash it by 75 percent.
When RadioShack reports second-quarter results on Wednesday, July 25th, Rifkin said the figures will show pressure on gross margin and deleveraging on SG&A. The Wall Street consensus estimate currently sits at 4 cents on sales of $971.53 million for RadioShack's upcoming quarter.
Rifkin cut his price target on RadioShack shares from $6 to $3. The analyst maintains an Equalweight.
With the stock last trading at $3.90, the Barclays' analyst's new price target represents potential downside of about 23 percent.
To track all the market-moving analyst action on shares of RadioShack, visit our Analyst Ratings page.
The analyst is modeling for a "significant" dividend reduction from the company, pointing out RadioShack has "seasonal" cash needs and $375 million in debt maturing at the end of August of next year. Rifkin believes the company will either eliminate the dividend or slash it by 75 percent.
When RadioShack reports second-quarter results on Wednesday, July 25th, Rifkin said the figures will show pressure on gross margin and deleveraging on SG&A. The Wall Street consensus estimate currently sits at 4 cents on sales of $971.53 million for RadioShack's upcoming quarter.
Rifkin cut his price target on RadioShack shares from $6 to $3. The analyst maintains an Equalweight.
With the stock last trading at $3.90, the Barclays' analyst's new price target represents potential downside of about 23 percent.
To track all the market-moving analyst action on shares of RadioShack, visit our Analyst Ratings page.
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