Zacks Investment Research upgraded shares of RadioShack Corp. (RSH) from UNDERPERFORM to NEUTRAL on September 19, 2014, with a target price of $1.00.
RadioShack reported dismal financial numbers for the second-quarter of fiscal 2015. Both the top and the bottom line significantly missed the Zacks Consensus Estimate. Nowadays, consumers prefer making online purchases to visiting retail stores and thus RadioShack's core Consumer Electronics retail business is on a secular downtrend. RadioShack is also facing a cash deficit situation and may file for bankruptcy if the company fails to improve its cash balance. However, the company recently received a boost after Bloomberg reported that it is in talks with its shareholder Standard General LP regarding rescue financing. Consequently, we have pulled up our rating from Underperform to Neutral. The company's shares have declined more than 50% in the past six months
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