Dahlman Rose Starts Rite-Aid (RAD) at Buy, Calls the Company a Perfect Acquisition Target
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Price: $0.65 --0%
Rating Summary:
5 Buy, 7 Hold, 4 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
5 Buy, 7 Hold, 4 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Dahlman Rose initiates coverage on shares of Rite-Aid (NYSE: RAD) with a Buy rating and $2.50 price target.
The firm likes the stock due to the company's asset value and the relative attractiveness of its format and retail footprint. RAD is currently the third largest pharmacy retailer in the U.S..
Given recent trends towards smaller store formats, the firm believes that Rite-Aid would be a great acquisition target. The company's sales trends have also been showing strong signs of improvements, which has provided the firm with more comfort in its fundamental story.
An analyst at Dahlman Rose comments, "Our $2.50 price target reflects a ~50% possibility of corporate activity and draw on other recent drug store deals for valuation reference. We think downside should be fairly limited due to the potential valuation of RAD's prescription files alone. For those willing to embrace RAD's balance sheet risk, we recommend the shares."
For more ratings news on Rite-Aid click here and for the rating history of Rite-Aid click here.
Shares of Rite-Aid closed at $1.28 yesterday.
The firm likes the stock due to the company's asset value and the relative attractiveness of its format and retail footprint. RAD is currently the third largest pharmacy retailer in the U.S..
Given recent trends towards smaller store formats, the firm believes that Rite-Aid would be a great acquisition target. The company's sales trends have also been showing strong signs of improvements, which has provided the firm with more comfort in its fundamental story.
An analyst at Dahlman Rose comments, "Our $2.50 price target reflects a ~50% possibility of corporate activity and draw on other recent drug store deals for valuation reference. We think downside should be fairly limited due to the potential valuation of RAD's prescription files alone. For those willing to embrace RAD's balance sheet risk, we recommend the shares."
For more ratings news on Rite-Aid click here and for the rating history of Rite-Aid click here.
Shares of Rite-Aid closed at $1.28 yesterday.
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