Rite Aid Corp. Now Covered by Analysts at Jefferies Group (RAD)
Jefferies Group initiated coverage on shares of Rite Aid Corp. (NYSE:RAD) in a research note issued on Monday, TheFlyOnTheWall.com reports. The firm set a “hold” rating and a $5.30 price target on the stock. Jefferies Group’s target price would indicate a potential upside of 1.92% from the company’s current price.
The analysts wrote, “Rite Aid has made progress in its turnaround, but we see declining EBITDA in the near-term as the company faces a fading generic drug wave, and some attrition from the Express Scripts customer wins from last year. Given Rite Aid’s financial leverage, and its 30-40% lower store productivity vs. CVS and WAG, we believe the current EV/EBITDA discount vs. these peers is justified.”
Shares of Rite Aid Corp. (NYSE:RAD) opened at 5.20 on Monday. Rite Aid Corp. has a one year low of $0.95 and a one year high of $5.33. The stock has a 50-day moving average of $4.02 and a 200-day moving average of $3.0. The company has a market cap of $4.690 billion and a price-to-earnings ratio of 16.40.
Rite Aid Corp. (NYSE:RAD) last announced its earnings results on Thursday, September 19th. The company reported $0.03 earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.04) by $0.07. The company had revenue of $6.30 billion for the quarter, compared to the consensus estimate of $6.27 billion. During the same quarter in the previous year, the company posted ($0.05) earnings per share. The company’s revenue for the quarter was up .8% on a year-over-year basis.
In other Rite Aid Corp. news, EVP Robert Ivan Thompson unloaded 400,000 shares of Rite Aid Corp. stock in a transaction that occurred on Wednesday, September 25th. The shares were sold at an average price of $4.81, for a total transaction of $1,924,000.00. Following the sale, the executive vice president now directly owns 749,882 shares in the company, valued at approximately $3,606,932. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link.
Several other analysts have also recently commented on the stock. Analysts at Credit Suisse raised their price target on shares of Rite Aid Corp. from $5.00 to $6.00 in a research note to investors on Friday. They now have an “outperform” rating on the stock. Separately, analysts at Raymond James reiterated a “buy” rating on shares of Rite Aid Corp. in a research note to investors on Thursday, October 3rd. They now have a $4.00 price target on the stock. Finally, analysts at BTIG Research raised their price target on shares of Rite Aid Corp. to $6.00 in a research note to investors on Thursday, October 3rd. They now have a “buy” rating on the stock. Five analysts have rated the stock with a hold rating and four have issued a buy rating to the company’s stock. The stock presently has an average rating of “Hold” and a consensus price target of $3.91.
Rite Aid Corporationis a retail drugstore chain in the United States. As of March 3, 2012, the Company operated drugstores in 31 states across the country and in the District of Columbia.
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