RadioShack stock up; analyst upbeat on 2Q profit

Shares of RadioShack Corp. rose on Monday, after an analyst said the consumer electronics retailer's quarterly results will likely exceed expectations, partly due to sales of TV converter boxes.

Shares rose 69 cents, or 5.6 percent, to $12.95 during morning trading. The stock has traded between $11.58 and $34.98 during the past 52 weeks.

The Fort Worth, Texas-based company reports fiscal second-quarter earnings on July 24. Lehman Brothers analyst Michael Lasser said in a note to investors on Monday that RadioShack's trends continue to improve during the quarter.

He expects results will beat analyst expectations, due to strength in "hot" product categories, stabilizing wireless results and strong sales of digital-to-analogu TV converter boxes.

"We believe the market has underestimated the potential contribution from these converter boxes since the product just began to gain traction in the last couple of months," Lasser wrote.

However, he kept his "Underweight" rating on the stock.

"Over the long-term, we think that RadioShack's shares probably won`t break out of a trading range until the company demonstrates that it can consistently generate top-line growth and overcome the challenges it faces from being overexposed to the wireless business," Lasser wrote.