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Goldman Sachs Cuts its Rating, Target for RadioShack (RSH)

Electronics retailer RadioShack Corporation ( RSH ) on Thursday caught a big downgrade from analysts at Goldman Sachs.

The firm said it cut its rating on RSH from "Buy" to "Neutral," citing weaker second quarter earnings estimates. The company is slated to report its latest results in July.

Goldman also cut its price target on RSH from $18 to $17. That new target suggests a smaller 9% upside to the stock's Wednesday closing price of $15.62. The analyst commented that increased competition in the wireless phone market made it "re-assess the sustainability of wireless tailwinds for RSH."

RadioShack shares fell 47 cents, or -3%, in premarket trading Thursday.

The Bottom Line

Shares of Radio Shack ( RSH ) have a 1.60% dividend yield, based on last night's closing stock price of $15.62. The stock has technical support in the $14 price area. If the shares can firm up, we see overhead resistance around the $17-$18 price levels.

RadioShack Corporation ( RSH ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 2.9 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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