Goldman Sachs Maintains a 'Neutral' on Rite-Aid (RAD); Same-Store Sales Reflect Impact of Generics
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Price: $2.91 -0.34%
Rating Summary:
5 Buy, 2 Hold, 0 Sell
Rating Trend:
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Today's Overall Ratings:
Up: 11 | Down: 18 | New: 13
Rating Summary:
5 Buy, 2 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 13
Trade RAD Now!
Goldman Sachs maintains a 'Neutral' on Rite-Aid (NYSE: RAD) price target of $1.90.
Analyst, Matthew J. Fassler, said, "The impact of generics (especially generic Plavix and Lipitor) on pharmacy SSS accelerated in June, driving a 670 bps headwind vs. 410 bps in May. Relative to our previous estimates, generics appear to be ramping faster, with a bigger impact to the top-line stronger. Same-store script growth improved in June (+2.9% vs. +2.6% in May), still aided by approximately 250 bps of benefit due to the Walgreen (NYSE: WAG) / Express Script (Nasdaq: ESRX) fallout."
"Our 2012 adjusted EBITDA estimate increases by $4 mn to $1.143 bn at the expense of 2013, which goes to $1.140 bn from $1.144 bn. Our 2014 estimate remains unchanged."
For an analyst ratings summary and ratings history on Rite-Aid click here. For more ratings news on Rite-Aid click here.
Shares of Rite-Aid closed at $1.40 yesterday, with a 52 week range of $0.85-$2.12.
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Analyst, Matthew J. Fassler, said, "The impact of generics (especially generic Plavix and Lipitor) on pharmacy SSS accelerated in June, driving a 670 bps headwind vs. 410 bps in May. Relative to our previous estimates, generics appear to be ramping faster, with a bigger impact to the top-line stronger. Same-store script growth improved in June (+2.9% vs. +2.6% in May), still aided by approximately 250 bps of benefit due to the Walgreen (NYSE: WAG) / Express Script (Nasdaq: ESRX) fallout."
"Our 2012 adjusted EBITDA estimate increases by $4 mn to $1.143 bn at the expense of 2013, which goes to $1.140 bn from $1.144 bn. Our 2014 estimate remains unchanged."
For an analyst ratings summary and ratings history on Rite-Aid click here. For more ratings news on Rite-Aid click here.
Shares of Rite-Aid closed at $1.40 yesterday, with a 52 week range of $0.85-$2.12.
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