UBS Maintains a 'Neutral' on Rite-Aid (RAD); Previewing Q4 and Forward Expectations

UBS maintains a 'Neutral' on Rite-Aid (NYSE: RAD) price target raised from $1.50 to $1.80.

Analyst, Jason DeRise, said, "We estimate -$0.13 loss per share in Q4 12FY, vs consensus loss per share of -$0.15. Our full year loss per share is -$0.37, which is the upper end of guidance (-$0.50/sh to -$0.37/sh)...We assume -10bps y/y gross margin reduction in Q4 12FY. In Q3 12FY, gross margin was flat y/y, but Q4 laps a tougher comparison...We estimate RAD loss narrows to -$0.18/sh in 13FY vs cons -$0.26/sh. Sales guidance will be key. We assume 13FY revenues of $27.0bn (+3.5% y/y) vs consensus of $25.7bn (-1% y/y)."

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 $1.73 yesterday.

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