Analyst love -- for RadioShack?
Posted
Jul 27 2009, 12:27 PM
by
Kim Peterson
Rating:
Say the word RadioShack (RSH) and you'll usually get a snort from Wall Street. Of the 19 analysts that cover the stock, only one had a rating stronger than hold, Barron's reports.
But last week, two of them changed their mind. Analysts from FBR and RBC Capital Markets upgraded their ratings from hold to outperform, Barron's reports. RadioShack shares jumped to $16 from the $14 range in response. Monday, however, the shares dropped back some 6%.
Why were analysts suddenly bullish on the downtrodden electronics retailer? They saw some good news in RadioShack's wireless business, buoyed by a new sales deal with T-Mobile USA.
Still, there is concern about overall sales. Many customers turned to RadioShack for help with the digital TV transition, heading there to buy television converters and antennas that could pick up a digital signal. But those sales are slowing down, now that households have adjusted to the switch.
Will RadioShack be able to replace that dwindling source of revenue? A handful of analysts seem to think so. The rest -- not so much.
Related reading:
Consumers can't stop buying electronics
Economy throws wrench into digital TV switch
Will your TV suddenly go black?