Goldman Sachs Says Buy Radioshack (RSH)

Goldman Sachs has a Buy rating and a $18 price target on shares of RadioShack Corporation RSH after it reported earnings yesterday. In a note to investors, Goldman writes, "In the face of low expectations, RSH's commentary after a tough 4Q had more redeeming qualities than we expected: RSH's 1Q wireless sales are keeping track with 4Q trends, despite Verizon's introduction of the iPhone. Guidance of $1.60-$1.90 brackets the Street, and excludes additional buybacks, which could add an additional $0.05-$0.06 at current prices. The company appears focused on driving sales of tablets, capitalizing on the potential for accessorizing connected TV, and, overhauling wireless warranties to introduce a monthly option (a page out of BBY's book)." Shares of RSH lost 39 cents yesterday to close at $15.31, a loss of 2.5%.