Rite Aid shares jump on JPMorgan upgrade

JPMorgan upgrades rating on Rite Aid on growth potential, shares jump

Associated Press

Rite Aid shares jumped Wednesday following an upgrade by a J.P.Morgan analyst.

Analyst Lisa Gill said in a research note that pharmacies should benefit from changes in health care in the coming years, including potential increases in prescriptions filled as more people get insurance coverage under the country's new health care law.

She also expects Rite Aid to benefit from new generic drug launches expected over the next two years.

Rite Aid's turnaround efforts and its loyalty program have already helped improve performance, Gill said.

She upgraded her rating on the company to "Overweight"— the equivalent of a "Buy" rating" — from "Neutral" and raised her target price on the stock to $6.50 from $6.

Shares of Camp Hill, Pa.-based Rite Aid Corp. increased 32 cents, or 6 percent, to $5.63 in late afternoon trading. The stock has risen by more than fourfold over the past year.

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