Stock analysts at Imperial Capital assumed coverage on shares of Rite Aid Corp. (NYSE:RAD) in a report issued on Thursday, TheFlyOnTheWall.com reports. The firm set an “outperform” rating and a $6.50 price target on the stock. Imperial Capital’s price target would indicate a potential upside of 27.45% from the stock’s previous close.
The analysts wrote, “We are re-initiating coverage of Rite Aid Corporation with an Outperform rating and one-year price target of $6.50, approximately 27% above the recent share price. Following a period of lackluster results, we now find Rite Aid in the midst of a successful multi-year turnaround strategy with opportunity for further gains in the years ahead, in our view. Management had engineered an improvement in cash flow and profitability over the past few years, which is likely to continue as older stores are remodeled, loyalty programs expand, and operational efficiencies take hold. While the stock had performed exceptionally well of late, we believe there is room for additional upside as Rite Aid’s management team successfully executes a favorable long-term strategy coinciding with demographic tailwinds surrounding the drugstore industry.”
Shares of Rite Aid Corp. (NYSE:RAD) traded up 2.94% during mid-day trading on Thursday, hitting $5.25. The stock had a trading volume of 7,488,039 shares. Rite Aid Corp. has a 52 week low of $0.95 and a 52 week high of $5.44. The stock has a 50-day moving average of $5.16 and a 200-day moving average of $3.71. The company has a market cap of $4.810 billion and a P/E ratio of 16.09.
Rite Aid Corp. (NYSE:RAD) last issued its quarterly earnings data on Thursday, September 19th. The company reported $0.03 earnings per share for the quarter, beating the analysts’ 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 last year, the company posted ($0.05) earnings per share. Rite Aid Corp.’s revenue was up .8% compared to the same quarter last year. Analysts expect that Rite Aid Corp. will post $0.24 EPS for the current fiscal year.
A number of other firms have also recently commented on RAD. Analysts at Deutsche Bank initiated coverage on shares of Rite Aid Corp. in a research note to investors on Wednesday. They set a “buy” rating and a $5.10 price target on the stock. Separately, analysts at Zacks upgraded shares of Rite Aid Corp. from a “neutral” rating to an “outperform” rating in a research note to investors on Thursday, October 10th. They now have a $5.30 price target on the stock. Finally, analysts at Raymond James raised their price target on shares of Rite Aid Corp. from $5.00 to $6.00 in a research note to investors on Tuesday, October 8th. They now have an “outperform” rating on the stock. Four equities research analysts have rated the stock with a hold rating and seven have issued a buy rating to the stock. Rite Aid Corp. presently has an average rating of “Buy” and a consensus target price of $4.72.
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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