Goldman Sachs Downgraded RadioShack to Neutral

Goldman Sachs downgraded its rating on RadioShack RSH to Neutral from Buy. In a research report published today, Goldman named RadioShack's Q1 results for its decision. In the report, Goldman states, "We downgrade RSH to Neutral from Buy. In the wake of revisions following RSH's 1Q report in April, our 2Q2011 estimate stands below consensus, and given the market's focus on near-term visibility we are stepping aside ahead of July's 2Q print. In addition, incremental competition is hitting the wireless market, and as smartphone penetration has increased, we think it necessary to re-assess the sustainability of wireless tailwinds for RSH. Since being added to the Buy List on 1/4/ 2010, RSH shares are -21% vs. the S&P 500 +16% and the RLX +28%. The underperformance was driven in part by a series of earnings disappointments." At the moment, Goldman has its price target on RadioShack set at $17. On Wednesday, RadioShack closed at $15.62.