Credit Suisse Comments On Rite Aid's Selloff

Rite Aid Corporation RAD shares have sold off heavily since May 10. Shares have fallen roughly 4.5 percent to $7.73 as of Thursday's close.

The selloff has Credit Suisse analyst Robert Willoughby monitoring the stickiness of the company's valuation in lieu of regulatory hurdles surrounding the merger with Walgreens Boots Alliance WBA.

Willoughby is cutting his FY 2017 EPS estimate for Rite Aid from $0.27 to $0.24, citing declining run rates. He still expects the deal to be blessed by the FCC and is keeping his $9 price target and Outperform rating.

Shares of Rite Aid closed Thursday session down 1.78 percent to $7.72.