Monday, Credit Suisse upgraded RadioShack Corp. (RSH) shares to Outperform from Neutral and increased its price target to $25 from $15.
Analyst Balter believes that the company is adding the iPhone, combined with a number of other recently announced initiatives, relatively easy near term comparisons, and a low valuation point to upside that may translate into multiple expansion into next year.
The analyst raised his 2010 estimate to a well above consensus to $1.97, as he believes that the wireless additions of T-Mobile and the iPhone will create additional traffic that should also drive sales of higher margin products in the stores, and the company should also benefit from the Target kiosk roll-out.
The analyst noted that Julian Day has positioned the company to benefit from the leverage now potentially created from wireless. Expenses have been brought lower, gross margin is being managed within segments through good inventory control, and mix should now be a positive tailwind through third quarter of next year as RSH laps the converter boxes.
The analyst believes fourth quarter can be a strong quarter because of easy compares and now next year should benefit from the dual additions of T-Mobile and the iPhone.
Currently, RSH is up $2.61 or 14.71% and trading at $20.35.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.