Bank Of America Comments On Radioshack's Headwinds, Lowers PT

According to a recent report from Bank of America, in the coming quarters, Radioshack RSH faces significantly more difficult compares including 56% and 49% sales gains in 4Q09 and 1Q10, respectively. It believes two major catalysts in 2011 will have a significant impact on RSH's wireless business, including the likely addition of the iPhone to Verizon's network and the belief that Best Buy BBY will significantly accelerate the growth of its stand-alone mobile stores. It is lowering the PT from $20 to $16. AT&T is RSH's primary carrier and the company has benefitted from strong demand for the iPhone, which has been exclusively available on AT&T. With Verizon widely expected to add the iPhone to its network and the carrier's #1 market share position, VZ is likely to benefit tremendously, with virtually no benefit accruing to RSH. RSH is trading lower at $17.43