ISI Group Reiterates Hold, $8 on RadioShack
ISI Group maintains its Hold rating on RadioShack (NYSE: RSH), with a $8 price target, as worries on margin collapse for Q4.
ISI Group says, "Q4 gross margins and Sprint post-paid sales disappointed. Consumer Electronics comps down 30%. When RSH pre-released in January, 4Q Comps of 2% came in better than expected, driven by AT&T and Verizon postpaid. That said, a strong smartphone and tablet cycle failed to offset weakness in the ongoing Sprint business. EBIT margins contracted over 500bps to 2.2%, driven by a gross margin decline of 620bps."
RSH closed at $8 a share on Friday.
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