Merrill analyst sees Tandy as Internet stock
SAN FRANCISCO, Oct 28 (Reuters) - Merrill Lynch analyst Peter
Caruso Thursday reiterated his buy rating on Radio Shack owner
Tandy Corp. (NYSE:TAN - news), citing it as one of the best
traditional retailing sector stocks to benefit from the growth of the
Internet.
Tandy jumped $6.25 to $60.25 after Caruso talked about the stock in
a conference call.
The analyst said that while some computer retailers will be hurt by the Intenret, Tandy will benefit from
increased buying of Internet devices like Palm Pilots, as well as from selling equipment bundled with
Internet access.
He said he expects Tandy to do a deal with either Microsoft Corp. (NasdaqNM:MSFT - news) or
American Online Inc. (NYSE:AOL - news) soon to feature their Internet services at the retail store.
''Tandy is one of the few retailers that can leverage the value of its physical structure as an asset,''
Caruso said. Other computer retailers, particularly CompUSA (NYSE:CPU - news), are feeling the heat
of online sales by Dell Computer Corp. (NasdaqNM:DELL - news), but Tandy is well positioned to
benefit from the growth of non-PC devices that connect to the Internet.
He said Best Buy (NYSE:BBY - news) and Circuit City (NYSE:CC - news) will also benefit from a
transition to new computer devices by reducing their exposure to volatile PC sales and selling an
increased number of consumer electronics and Internet devices. Circuit City gained $3.94 to $42 and
Best Buy rose $3.25 to $54, but CompUSA dropped 12 cents to $5.78.
More Quotes
and News:
America Online Inc (NYSE:AOL - news)
Best Buy Co Inc (NYSE:BBY - news)
Circuit City Stores Inc (NYSE:CC - news)
Compusa Inc (NYSE:CPU - news)
Dell Computer Corp (NasdaqNM:DELL - news)
Microsoft Corp (NasdaqNM:MSFT - news)
Tandy |
