Boston, MA 10/14/2013 (wallstreetpr) – On Thursday, Rite Aid Corporation (NYSE:RAD)’s rating has been revised from ‘neutral’ to ‘outperform’ by Zacks owing to its exceptional performance during the second-quarter results of fiscal 2014. Analysts from Zacks have set a price target of $5.30 for the stock which is 6.21% above the company’s current market price.
On the last day of the trading week, Rite closed 0.20% below at $4.99, with a trading volume of 916.18 million shares. The company has a 52-week high of $5.33 and a 52-week low of $0.95. Rite Aid Corp. having a market cap of $4.57billion, has a P/E ratio of 15.70.
Rite Aid Corporation which is a retail drugstore chain in the United States is in the process of expanding its generic medicine portfolio which should augment its margins. Over and above, Rite Aid is also reviewing expansion plans of its clinical and pharmacy services through remodeling its wellness stores and customer loyalty programs. These measures could clearly be reflected from its second quarter results which reported $0.08 earnings per share as compared to $0.05 loss per share posted for the quarter last year. The company has reported the revenue of $6.30 billion for the quarter beating the market estimate of $6.27 billion which is up 0.8% on a year-over-year basis. Zacks’ has reiterated the fact that the company’s renewed strategies will help it to add more on its customer base and will help drive the company’s performance.
Apart from Zacks, Rite has also received upward revisions in its ratings from the other research analyst firms. Early this month, Credit Suisse has raised their rating on the stock to ‘outperform’ and has revised their price target from $5.00 to $6.00. Analysts at Raymond James have also upgraded the ratings in the same lines as Credit Suisse. Currently, Rite Aid Corporation has a consensus target price of $4.44 and a consensus rating of ‘Buy’.
