Market Overview

UPDATE: Goldman Sachs Downgrades RadioShack to Sell; Business Model is Challenged

Related RSH
Zamansky LLC Investigates RadioShack Over Its Employee 401(k) Plan
RadioShack a Penny Stock Now, Recovery Jeopardized - Analyst Blog
RadioShack Posts Bigger Loss as Sales Lag (Fox Business)

Goldman Sachs downgraded RadioShack (NYSE: RSH) from Neutral to Sell and lowered the price target from $2.90 to $2.75.

Goldman Sachs said, "RSH operates with a challenged business model, given its reliance on wireless, a slowing category where it is losing market power, the perpetual challenge of price transparency, and limited opportunity for cost cuts after sharp reductions in recent years. Our estimates stand below consensus. The firm operates with lofty leverage, and we see minimal equity value, with a price target below the market price after the stock's recent recovery (21% downside). We see few of the strategic dynamics (M&A, founder interest) that have helped drive a rally among other challenged franchises of late."

RadioShack closed at $3.48 on Monday.

Posted-In: Goldman SachsAnalyst Color Downgrades Analyst Ratings

 

Most Popular

Related Articles (RSH)

Around the Web, We're Loving...

Partner Network

Get Benzinga's News Delivered Free