Morgan Stanley Says Express Scripts (ESRX) Customers Becoming Cozy with Rite Aid (RAD)
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Price: $2.82 -2.42%
Rating Summary:
5 Buy, 2 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 28 | New: 14
Rating Summary:
5 Buy, 2 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 28 | New: 14
Trade RAD Now!
Rite Aid (NYSE: RAD) shares are firming up well Friday as Morgan Stanley touted the potential for the retail pharma giant in prescriptions moving forward.
As announced earlier in the week, Rite Aid peer Walgreen & Co. (NYSE: WAG) said it would be spending $6.7 billion for a minority stake in Alliance Boots, with an option to acquire the balance in about three years. The announcement has Morgan Stanley thinking a near-term contract settlement between Walgreen and PBM giant Express Scripts (Nasdaq: ESRX) will be less likely.
Rite Aid is currently partnered with Express Scripts. Morgan Stanley believes as customers become more familiar with Rite Aid's loyalty card and customer service, its less likely they'll make a switch back to Walgreen's locations.
Shares of Rite Aid are up 5.6 percent Friday.
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As announced earlier in the week, Rite Aid peer Walgreen & Co. (NYSE: WAG) said it would be spending $6.7 billion for a minority stake in Alliance Boots, with an option to acquire the balance in about three years. The announcement has Morgan Stanley thinking a near-term contract settlement between Walgreen and PBM giant Express Scripts (Nasdaq: ESRX) will be less likely.
Rite Aid is currently partnered with Express Scripts. Morgan Stanley believes as customers become more familiar with Rite Aid's loyalty card and customer service, its less likely they'll make a switch back to Walgreen's locations.
Shares of Rite Aid are up 5.6 percent Friday.
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