We upgrade our recommendation for RadioShack (RSH) to Outperform based on our assessment that the company is likely to improve its earnings in future reporting quarters as a result of a significant boom in the wireless industry.
The company is generating healthy revenue growth from stronger sales for its Sprint Nextel postpaid wireless business, netbooks and prepaid wireless handsets and airtime. The addition of T-Mobile as a postpaid wireless carrier also contributed to revenue.
RadioShack’s decision to introduce iPhone 3G in all of its stores in 2010 will also boost its top-line. In addition, RadioShack began selling mobile phones in kiosks at about 100 Target stores.Zacks Investment Research
