RadioShack upgraded on initiatives
Barclays expects the electronics retailer to benefit from partnerships with T-Mobile and Apple.
By Jeanine Poggi, TheStreet
RadioShack (RSH) was upgraded by Barclays (BCS), which expects the electronics retailers’ new initiatives to boost earnings next year.
Barclays raised its rating on the stock to “overweight,” saying the company should benefit from the addition of T-Mobile services and Apple (AAPL) iPhones, and its new branding campaign.
The T-Mobile deal is expected to add at least $450 million in sales and 40 cents to earnings next year, Barclays wrote in a note. The brokerage firm raised its 2010 earnings forecast to $1.97 a share.
Last month, RadioShack started offering the iPhone 3G and iPhone 3GS in New York and Dallas, and plans bring them to stores nationwide in 2010.
Barclays said it didn’t include the contribution from Target (TGT) kiosks, share buybacks and other improvements, which could add another 40 cents to earnings. RadioShack recently began selling mobile phones in kiosks at about 100 Target stores in Minnesota, California, Georgia, Illinois, New Jersey, Texas and Washington.
Rival Best Buy (BBY) is scheduled to report third-quarter results on Tuesday.
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