Michael Pachter: Lowering RadioShack Price Target on Loss of Sam’s Club Deal

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 >>