UBS Maintains a 'Neutral' on Rite-Aid (RAD); Raising PT on Business Momentum

UBS maintains a 'Neutral' on Rite-Aid (NYSE: RAD), price target lifted from $1.10 to $1.20.

UBS analyst says, "Given the strong same-store sales for Rite Aid in the first two months of the upcoming F2Q12 reporting period (ending in August), combined with the recent robust earnings and margin results witnessed from other drug retailers (CVS (NYSE: CVS) in particular), we are raising our EPS estimates and RAD price target...Assuming gross margin still only declines by 10 bps y-o-y (to 26.5%), we are tweaking up our F2Q12 EPS (loss) estimate from ($0.16) to ($0.15). Our F2Q12 EBITDA estimate increases from $165 mil to $170 million." (UBS slightly raises FY12 EPS loss from (0.39) to (0.38), FY13 maintained at (0.27))

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 $1.20 yesterday.

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