$0.00 - B. Riley Cuts RadioShack's Price Target
It's not often that an analyst puts a $0 price target on a stock.
Analyst Scott Tilghman of B. Riley did exactly that Wednesday morning with regards to RadioShack (NYSE: RSH). Tilghman thinks there is more than a 50 percent chance that RadioShack will declare bankruptcy, which is enough of a catalyst for him to slash his $1 target to $0.
The ratings coverage comes after the company announced a four percent revenue miss and 89 percent earnings miss. Not helping shares, RadioShack said it may need to raise capital during the conference call.
Fitch also made an announcement Wednesday morning, stating that “RadioShack has limited options as liquidity dwindles.”
Of the 19 analysts that cover RadioShack, there are no Buy ratings. Thirteen analysts are advising their clients to Hold the stock while six suggest a sale of shares. The average price target is now $1.30 (5.1 percent downside).
Shares of RadioShack are down 0.72 percent Wednesday after dropping 10.39 percent Tuesday.
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