Now Is The Time To Buy Rite Aid Shares, Says UBS
In a research report sent to investors today, UBS analyst Steven Valiquette upgraded shares of Rite Aid (NYSE:RAD) from Hold to Buy, and raised his price target to $8.00 (from $6.25), which represents a potential upside of 39% from where the stock is currently trading.
Valiquette explained, “With two downward EBITDA/EPS revisions in calendar 2014 out of the way and shares of RAD still down ~35% from the 52-week high set six months ago in early June, we believe the worst is behind us in relation to the current year, and believe investors should now focus on key drivers that could propel shares higher in calendar ’15 and ’16. RAD is scheduled to report F3Q15 EPS this Thursday.”
The analyst continued, “We believe the bar has been sufficiently lowered for this year such that F3Q earnings are no longer a material risk factor. As such, we believe it is time to buy RAD ahead of growth resumption in FY16.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Steven Valiquette has a total average return of 27.0% and a 76.5% success rate. Valiquette is ranked #292 out of 3412 analysts.