UPDATE: Goldman Sachs Reiterates Neutral Rating, Raises PT on RadioShack Corporation After New CEO Announcement
In a report published Friday, Goldman Sachs reiterated its Neutral rating on RadioShack Corporation (NYSE: RSH), and slightly raised its price target from $2.60 to $2.90.
Goldman Sachs noted, “RSH announced that it named Walgreen executive Joseph Magnacca as its new CEO effective Feb 11. Mr. Magnacca was last EVP of Walgreen Co., and President of Daily Living Products and Solutions, a post he held since April 2011. He joined WAG after its acquisition of Duane Reade, where he had served as President, following a two-year stint as SVP and Chief Merchandising Officer...We lift our 12-month price target to $2.90 from $2.60, using our risk/reward framework deploying rent-adjusted EV/EBITDAR. We raise our ‘base case' multiple to 7.0X from 6.8X on additional visibility associated with a CEO hire, noting that the valuation model is highly levered given the firm's financial profile. We maintain our Neutral rating.”
RadioShack Corporation closed on Thursday at $3.11.
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