Analyst lifts RadioShack rating to 'Overweight'

AP News
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Posted: Dec 14, 2009 1:21 PM

Shares of RadioShack Corp. climbed Monday as an analyst raised his rating on the consumer electronics company, saying it will likely report higher earnings next year on the addition of T-Mobile and a nationwide rollout of the iPhone.

Michael Lasser of Barclays Capital said in a client note that T-Mobile and the iPhone should add at least $450 million in sales in 2010 and 40 cents to its earnings per share.

On average, analysts surveyed by Thomson Reuters forecast a profit of $1.63 per share on sales of $4.29 billion in 2010.

RadioShack, based in Fort Worth, Texas, announced in July the addition of T-Mobile to its lineup of wireless carriers in about 4,000 stores.

The analyst lifted RadioShack to "Overweight" from "Equal Weight" and increased its price target to $25 from $20.

The company's stock gained 82 cents, or 4.2 percent, to $20.30 in afternoon trading. The shares have traded in a 52-week range of $6.47 to $20.57.