Rite Aid is one of the nation’s leading drugstore chains, with nearly 4,600 stores in 31 states and the District of Columbia. Many on Wall Street see the company very favorably positioned in health care given its geographic overlap with Medicaid expansion, as well as its push into clinics.
The company was in the spotlight recently as rumors had resurfaced of a possible takeover of the company by Walgreens Boot Alliance. When Walgreens reported earnings, investors started to think that perhaps the company was not looking for an acquisition, and if it was that perhaps it wasn’t Rite Aid.
The Cowen team, which never had a buyout as part of the firm’s central thesis for owning the stock, feel that with the stock down close to 10%, investors have a very attractive entry point. The analysts feel that current underlying fundamentals remain very strong and think that management 2016 guidance likely will prove conservative, with upside from the deal with McKesson and perhaps an earlier than expected close of EnvisionRx acquisition.
The Cowen price target is a strong $12, and the consensus target is much lower at $10. The shares closed Wednesday at $8.32. Trading to the Cowen target would be an outstanding 45% gain for shareholders.
Rad will be there sooner than later .
Its on fire
Large retailers are out of options to cut cost and stay in the black , they are scrambling to increase
their sales and profit and they can do it only by acquiring other companies. RAD has emerged and continue to be a big winner in retail pharmacy and could be easily integrated with many established
very good #s we will see higher profit as a result of closing 17 non profitable stores and better sales.
HIGHER SALES AND HIGHER PROFIT AND NOT lower profit on higher sales.
its not a rumor .......
The health sector is on fire, Envision, Catamaran, United Health.........
UnitedHealth to Buy Catamaran for $12.8 Billion
Rad bot Envision $2.B
Rad is just getting started for a series of new highs
Sentiment: Strong Buy
Many are interested in Rite Aid
The Democratic-backed Affordable Care Act, commonly called Obamacare, aims to help millions of Americans without health insurance obtain coverage.
There has been speculation that Walgreens' smaller rival Rite Aid Corp, which is acquiring full service benefit management company Envision Pharmaceutical for $2 billion, could itself be an attractive acquisition target, with Walgreens having expressed interest in buying it in the past.
While Conns reported negative comps, many other retailers posted positive comps data for March. These include Rite Aid Corp. RAD, Zumiez, Inc. ZUMZ and The Gap, Inc. GPS, which witnessed comps growth of 4.3%, 5.5% and 2%, respectively.
Yahoo core business?