Wedbush Reiterates Underperform On RadioShack Ahead Of Q2 Results On Thursday
In a report issued yesterday, Wedbush analyst Michael Pachter reiterated an Underperform rating on RadioShack (NYSE:RSH) and decreased its price target to $0 (from $1). This report was published ahead of Q2 results.
Pachter wrote: “We believe brick and mortar electronics retailers will see persistent structural decline as Internet sales continue to take share. Best Buy experienced comp declines of 2.7% for Q2:15. Domestic Q2 sales were down 2% overall, and store level sales were down roughly 4% without the contribution of over $100 million incremental online sales. Notwithstanding significant investments in price competitiveness, we see continuing evidence of traffic deterioration and lower productivity for Best Buy’s retail foot print. RadioShack has less financial flexibility to invest in price competitiveness, and its primary business is as a consumer electronics “convenience store”. We believe the Internet is more convenient.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Michael Pachter has a total average return of -1.0% and a 45.4% success rate. Pachter has a 46.1% average return when recommending RSH, and is ranked #2851 out of 3291 analysts.