Goldman Sachs Upgrades RadioShack

Goldman Sachs is out with a research report on RadioShack Corp. RSH and is upgrading shares and putting them on the Conviction Buy List, and it has a $18 price target on shares. In a note to clients, Goldman Sachs writes, "We upgrade RSH to CL-Buy from Neutral. We see an attractive entry point into shares and expect earnings trends to accelerate off recent trough levels. RSH's addition of Verizon to its wireless assortment, replacing T-mobile, broadens its market opportunity substantially, and should drive reacceleration in wireless sales trends, overall same-store sales growth, and earnings growth. Acceleration in YTY growth will be more pronounced as the firm cycles clearance of consumer electronics goods in 2H2010, and the dilutive impact of T-Mobile to margins in the past several quarters. Our new estimates stand above consensus and our $18 price target implies 29% upside." Shares of RSH are up 88 cents in pre-market trading to $14.80.