According to analyst Michael Pachter at Wedbush Morgan, RadioShack (NYSE:RSH) is weak, but valuation is better.
Here’s Pachter’s bullet points for today’s earnings release:
- We are raising our rating to NEUTRAL from UNDERPERFORM based on valuation, but lowering our 12-month price target to $18 from $22.
- Before the market open Monday, RadioShack preannounced weak preliminary Q4 results.
- We are lowering our estimates to reflect the preannouncement and the loss of Sam’s Club kiosks.
- Leadership change announced.
- Earlier this month, RadioShack announced that it would close approximately 400 wireless kiosks in Sam’s Club stores by June 30.
- RadioShack updated its share repurchase programs.
Don’t Miss: Is Netflix About to Crash? >>
Invest in Yourself: Get winning investment ideas with the Wall St. Cheat Sheet Premium newsletter >>