RadioShack (RSH) (DV) (RHI) (CPLA) (RUSHA) (COLM) Price Targets Changed

RadioShack (NYSE: RSH), DeVry Inc. (NYSE: DV), Robert Half (NYSE: RHI), Capella Education (NASDAQ: CPLA), Rush Enterprises, Inc. (NASDAQ: RUSHA) and Columbia Sportswear (NASDAQ: COLM) had price targets on them adjusted by analysts.

RadioShack (RSH) had its price target lowered by RBC Capital from $15.00 to $13.00. They have a “Sector Perform” rating on the company.

DeVry Inc. (DV) had its price target lowered by Piper Jaffray (NYSE:PJC) to $54.00.

Robert Half (RHI) had its price target raised by Barclays Capital from $32.00 to $35.00. They have an “Overweight” rating on the company.

Capella Education (CPLA) had its price target raised by Piper Jaffray to $46.00.

Rush Enterprises, Inc. (RUSHA) had its price target raised by RBC Capital from $21.00 to $24.00. They have an “Outperform” rating on the company.

Columbia Sportswear (COLM) had its price target raised by FBR Capital from $56.00 to $58.00. They have a “Market Perform” rating on the company.

Teck (TCK) (RTN) (RSH) (OIS) (KEG) (LLY) Upgraded

Teck Resources Limited (NYSE: TCK), Raytheon Company (NYSE: RTN), RadioShack (NYSE: RSH), Oil States International, Inc. (NYSE: OIS), Key Energy (NYSE: KEG) and Eli Lilly & Co. (NYSE: LLY) upgraded by analysts.

Teck Resources Limited (TCK) was upgraded by BB&T (NYSE:BBT) from a “Hold” rating to a “Buy” rating.

Raytheon Company (RTN) was upgraded by Sanford C. Bernstein from a “Market Perform” rating to an “Outperform” rating.

RadioShack (RSH) was upgraded by Goldman Sachs (NYSE:GS) from a “Neutral” rating to a “Buy” rating. They have a price target of $18.00 on the company.

Oil States International, Inc. (OIS) was upgraded by Credit Suisse (NYSE:CS) from a “Neutral” rating to an “Outperform” rating. They

have a price target of $110.00 on the company.

Key Energy (KEG) was upgraded by Weeden from a “Hold” rating to a “Buy” rating. They have a price target of $26.00 on the company.

Eli Lilly & Co. (LLY) was upgraded by Leerink from an “Underperform” rating to a “Market Perform” rating.

Staples To Sell (RIMM) (MMI) (DELL) Tablets

As a wave of competitors to Apple's (NASDAQ:AAPL) iPad 2 hit the market, Staples (NASDAQ:SPLS) announced they're going to offer a wide range of new tablets, including those from Research in Motion (NASDAQ:RIMM), Dell (NASDAQ:DELL), Samsung, Acer, Toshiba and Motorola Mobility (NYSE:MMI).

The office supply and electronic retailer said they're now taking pre-orders for a variety of tablets now available.

Staples said they have a goal of becoming a major player in the tablet market as the sector grows.

Major retailing competitors of the company like Wal-Mart (NYSE:WMT), Best Buy (NYSE:BBY), Office Depot (NYSE:ODP) and Radio Shack (NYSE:RSH) have already either committed to or are offering tablets too.

Goldman Sachs (GS) Sees (OMX), (ANF), (AEO), (RSH), (ANN), (GPS), (SWY) in LBO Deals

The retail sector could be about to explode in LBO deals, according to Goldman Sachs (NYSE:GS), which sees the probability of LBO's for Safeway (NYSE:SWY), The Children's Place Retail Stores (NASDAQ:PLCE), OfficeMax (NYSE:OMX), Ross Stores (Nasdaq:ROST), Abercrombie & Fitch (NYSE:ANF), American Eagle Outfitters, (NYSE:AEO), Aeropostale (NYSE:ARO), RadioShack (NYSE:RSH), AnnTaylor Stores (NYSE), Dollar Tree (DLTR) and Gap (NYSE:GPS).

American Eagle Outfitters (NYSE:AEO) got a nice bump up on Wednesday on LBO rumors, so we'll probably start to see a lot of trading in the sector as rumors escalate, with a number of them probably being true, as pointed out by Goldman.

These are just some of the probabilities in the retail sector, which could consolidate even more.

Goldman determines that about $9 billion could be spent on U.S. retail LBOs. Of a universe of over 120 public companies, that equates to close to 8 percent of the overall aggregate enterprise value. That's how they came up with the 11 companies listed above, as far as the number of companies which are likely to be part of an LBO.

Goldman sees a 15 percent to 30 percent chance of a leveraged buy out for the companies listed above.

RadioShack (NYSE:RSH) Shares Crushed on Negative Preannouncement

Shares of RadioShack Corp. (NYSE:RSH) were hammered Monday on the negative earnings preannouncement, and the news CEO Julian Day was stepping down, effective immediately.

FBR noted, "This morning (Monday), RadioShack preannounced that 4Q10 EPS would be down at $0.50–$0.54 per share versus the Street consensus of $0.67. Concurrently, the company announced that CEO Julian Day would be retiring effective immediately, with Jim Gooch, the company's CFO, replacing him...The underperformance of the third and most recently added carrier contract, T-Mobile, also raises questions about the addition of a fourth carrier. While we derive strategic value with the shares at higher levels, in the event that financial sponsor interest resurfaces, we find it difficult to recommend the stock, given the uncertainty that is currently underway.

"We adjust our 2010 EPS estimate to $1.68 from $1.76 on the heels of the company's preannouncement. This compares with the Street consensus estimate of $1.83 prior to the company's preannouncement. We also adjust our 2011 EPS estimate to $1.62 from $1.78, which compares with the Street estimate of $2.08. For 2012, we adjust our EPS estimate to $1.74 from $1.92 versus the Street consensus of $2.16."

FBR Capital reiterates a "Market Perform" rating on RadioShack Corp. (RSH), which closed Monday at $15.62, dropping $1.99, or 11.30 percent. FBR lowered their price target on RadioShack from $20 to $19.

United Stationers (Nasdaq:USTR), Office Depot (NYSE:ODP), Home Depot (NYSE:HD) Top Retail Picks of FBR

FBR liked what they saw in general for hardline retailers in December, and released a report on a number of companies, of which their favorites are United Stationers (Nasdaq:USTR), Office Depot (NYSE:ODP) and Home Depot (NYSE:HD), all which they have an "Outperform" on.

FBR says, "Retail sales as reported by the census for hardlines (these companies do not report monthly comp store sales), were generally good for the categories we track in December, with all categories but one showing a sequential improvement in YOY trends. Most notable was Home Improvement (building materials, garden equipment and supplies dealers, NAICS 444) which was up +13.1% YOY. This was an acceleration from the +11.2% reported in October, and an improvement on a 3-year stacked basis. Consumer Electronics Sales (NAICS 443) improved to +1.8% YOY for the month of December, up from -0.4% in November. Based on the recent results and comments out of BBY & HGG (both included the month of December), as well as HD, the strength within this category was likely driven by appliances. Aftermarket Auto Parts were up +9.6% YOY, and this was up from +9.3% in November. So, the strength in after-market auto parts continues its pace. Home Furnishings were flat sequentially, at +1.4% YOY for the month of December. Strength in this category continues to be on the furniture side. Office Supplies (NAICS 4532) sales are reported on a one month lag, and these were up +7.7% in the month of November, up from -1.7% in October. While this category showed notable strength, it contradicts our channel checks, which have shown a slight deceleration in the month of November.

Those getting a "Market Perform" from FBR included Lowe's (NYSE:LOW), RadioShack (NYSE:RSH), Best Buy (NYSE:BBY), hhgregg (NYSE:HGG), OfficeMax (NYSE:OMX), AutoZone (NYSE:AZO), Advanced Auto (NYSE:AAP), and O'reilly (Nasdaq:ORLY).

Companies with an "Underperform" rating were Staples (Nasdaq:SPLS), Genuine Parts (NYSE:GPC), Tractor Supply (Nasdaq:TSCO), and Bed Bath & Beyond (Nasdaq:BBBY).

Sam's (NYSE:WMT) Drops 417 RadioShack (NYSE:RSH) Kiosks

RadioShack (NYSE:RSH) got bad news from Sam's Club (Wal-Mart) as they decided to drop the 417 RadioShack kiosks operated by RadioShack in the stores.

Goldman Sachs (NYSE:GS) noted that instead of prior expectations of generating a $30 million increase in revenue from Kiosks, now it'll decline by $10 to $15 million.

RadioShack had their 4Q10 EPS estimate lowered from $0.64 to $0.62, for full year 2011 from $2.14 to $1.90, and full year 2012 from $2.40 to $2.15.

The upcoming release of the Apple (Nasdaq:AAPL) iPhone by Verizon (NYSE:VZ) is also considered a negative by Goldman for RadioShack.

Even so, Goldman maintains their "Buy" rating on RadioShack, which closed Monday at $17.47, losing $0.89, or 4.85 percent. Goldman lowered their price target on them from $20 to $22.

99 Cents Only (NYSE:NDN), Aeropostale (NYSE:ARO), American Eagle (NYSE:AEO) Named Top LBO Candidates for 2011 by Deutsche (NYSE:DB)

Deutsche Bank (NYSE:DB) released an interesting list of takeover candidates for 2011 in the U.S retail sector, using a metric of those which would probably generate 20 percent premium or more, with their top possibilities being 99 Cents Only (NYSE:NDN), Aeropostale (NYSE:ARO) and American Eagle (NYSE:AEO).

Other big names they consider leading candidates, although not as probable as the three above, were Macy's (NYSE: M), Saks (NYSE:SKS), RadioShack (NYSE:RSH), The Buckle (NYSE:BKE), Best Buy (NYSE:BBY), AnnTaylor (NYSE:ANN), Big Lots (NYSE:BIG) and Gap (NYSE:GPS)

99 Cents Only closed at $15.65 Monday, gaining $0.08, or 0.51 percent. Aeropostale closed at $25.21, up $0.38, or 1.53 percent. American Eagle ended the session at $14.37, down $0.09, or 0.62 percent.

Outlook for Home Depot (NYSE:HD), Lowe's (NYSE:LOW)

FBR says their outlook for home improvement in 2011 is "constructive," but volatile housing metrics keep their from recommending Home Depot (NYSE:HD) and Lowe's (NYSE:LOW) outright.

FBR said, "We are constructive on home improvement, with the group building off of trough trends set in 2009. Choppy housing metrics, such as Case-Shiller, mean that investors can stay selective; and this keeps us from recommending outright both stocks. We expect HD to continue to exhibit better business and share price momentum. Initiatives, such as "First Phone" (mobile handhelds), bode well for the continuation of better relative same-store sales trends for HD, in our view. The chain with higher comp momentum in the past has been afforded a premium P/E valuation. HD's current 2% premium NTM P/E, versus LOW's, looks too low, given its premium same-store sales trends, higher inventory turnover, and other superior operating metrics, such as sales and EBIT per square foot. In the short run, we anticipate that last week's winter storm activity in the Northeast will have a neutral impact on group sales trends—worst case, while a modest net benefit is possible, given storm preparation sales. We reiterate our Outperform rating on Home Depot and our Market Perform rating on Lowe's.

"EPS estimates. For 2010, for HD, we estimate EPS of $1.98, versus the Street estimate of $1.98 and guidance of $1.97 GAAP ($1.99 ex. charges). For 2011, we estimate EPS of $2.22; and this approximates the Street consensus of $2.24. This also compares with HD's guidance (including share repurchases) of 11% to 13% EPS growth over $1.97 GAAP for 2010 (implicit $2.13 to $2.23 for 2011E). For 2012, our EPS estimate for HD is $2.47 (up 11% YOY). For LOW, for 2010, we estimate EPS of $1.41, versus the Street at $1.41. We estimate EPS of $1.63 for 2011 (including an extra week's benefit in 2011), versus the Street consensus estimate of $1.64. LOW has not yet provided tangible EPS guidance for 2011E. For 2012, we estimate EPS for LOW of $1.77, which reflects an 11% YOY EPS growth rate, adjusted for the extra week."

They also gave their ratings for hardline retail:

"Outperform-rated stocks: Home Depot, Office Depot (NYSE:ODP), United Stationers (Nasdaq:USTR), and Radio Shack (NYSE:RSH); Underperform-rated stocks: Genuine Parts Company (NYSE:GPC), Tractor Supply (Nasdaq:TSCO), Staples (Nasdaq:SPLS), and Bed Bath & Beyond (Nasdaq:BBBY); Market Perform–rated stocks: Lowe's, Office Max (NYSE:OMX), Best Buy (NYSE:BBY), hhgregg (NYSE:HGG), O’Reilly Automotive (Nasdaq:ORLY), Auto Zone (NYSE:AZO), and Advance Auto Parts (NYSE:AAP)."

Home Depot was trading at $35.44, up $0.38, or 1.10 percent, as of 11:21 AM EST. Lowe's was trading at $25.30, up $0.22, or 0.88 percent.

Goldman (NYSE:GS) Lowers Estimates, PT on RadioShack (NYSE:RSH)

Citing a lack of variety for high-demand products like tablets and e-readers, Goldman Sachs (NYSE:GS) lowered their EPS estimate and price target on RadioShack (NYSE:RSH), although they surprisingly maintain a "Buy" rating on them, probably on Christmas season alone.

Consequently Radioshack isn't drawing any buzz or much interest or demand when compared to competitors.

EPS estimates for 2010 were lowered from $1.88 to $1.80; 2011 from $2.23 to $2.14, and from $2.50 to $2.40 for 2012.

RadioShack closed Thursday at $19.01, up by $0.49, or 2.65 percent. Goldman lowered their price target on them from $25 to $22, reflecting the lack of competitiveness.

Best Buy (NYSE:BBY), 5 Cents Only (NYSE:NDN), Family Dollar (NYSE:FDO), Big 5 Sporting Goods (Nasdaq:BGFV) Among Retail LBO Possibilities

With consolidation activity increasing in the retail sector, Deutsche Bank (NYSE:DB) updated their LBO screen, which included companies rated a "Buy" like Best Buy (NYSE:BBY), 5 Cents Only Stores (NYSE:NDN), Family Dollar (NYSE:FDO) and Big 5 Sporting Goods (Nasdaq:BGFV).

Companies listed which included a "Hold" on them were RadioShack (NYSE:RSH), OfficeMax (NYSE:OMX) and Bed Bath & Beyond (Nasdaq:BBBY).

All of the stores listed above are in the top 7 from Deutsche LBO screen, and which also would expect to be acquired at a premium of 20 percent or more, other than Family Dollar.

RadioShack, the No. 1 company listed, closed Wednesday at $18.73, losing $0.29, or 1.52 percent. They could attract a bid as high as $30 a share.

Big Five Sporting Goods is No. 2 on the list, which closed Wednesday at $13.12, gaining $0.72, or 5.81 percent. They could received a bid as high as $17 a share.

OfficeMax is No. 3 on the list, and closed Wednesday at $17.91, rising by $0.94, or 5.54 percent. They could be acquired for as high as $22 a share.

Best Buy is No. 4 on Deutsche's list, and closed Wednesday at $44.81, increasing by $0.64, or 1.45 percent. Possible acquisition price for them could be $58 a share.

99 Cents Only Stores is in the No. 5 position, closing at $16.14 Wednesday, gaining $0.41, or 2.61 percent. An possible acquisition price of $20 was placed on them.

Bed Bath & Beyond is No. 6, and they closed at $44.32 Wednesday, rising by $1.59, or 3.72 percent. Possible acquisition price on them is $53.

Last among the top seven is Family Dollar, which closed Wednesday at $50.68, gaining $1.29, or 2.61 percent. Acquisition price for them was listed at $60 a share.