Though the company reported results last Thursday, today's earnings call and analyst upgrade seem to have given the company's stock a fresh boost.
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The company reported a 5.4% increase in same store sales during the quarter over the same period last year driven by a 4.5% increase in same store prescription count. The company reported net income of $104.8 million and adjusted EBITDA of $332.8 million during the period. Both amounts were significant improvements over last year's totals.
Analysts at Credit Suisse raised the company's price target to $8 from $7 while maintaining its "outperform" rating on the company's stock today. The company's 10 cent per share EPS for the quarter was 5 cents better than analysts' expectations for the period.
TheStreet Ratings team rates RITE AID CORP as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate RITE AID CORP (RAD) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and growth in earnings per share. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow and poor profit margins."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- You can view the full analysis from the report here: RAD Ratings Report