Rite Aid: What Are The Experts Saying Ahead Of Earnings?

Shares of Rite Aid Corporation RAD have surged more than 17.6 percent in the past three months, as the stock has recently made a push make new all-time highs. With the company set to release earnings on Thursday, is now the time for traders to be taking profits in the drug store, or is the sky the limit for Rite Aid's stock?

In the past couple of weeks, several top Wall Street firms have weighed in on Rite Aid. Here’s a summary of what they believe is in store for investors.

UBS

UBS analysts believe that the foundation is in place for Rite Aid to exceed Wall Street earnings consensus “by a fairly wide amount.” UBS has a Buy rating on Rite Aid and a $10 target for the stock.

Credit Suisse

Credit Suisse analysts believe that Rite aid “provides one of the more compelling risk/reward profiles in our space.” The firm has an Outperform rating on Rite Aid and a $10 target for the stock.

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Deutsche Bank

Deutsche Bank analysts see “multiple drivers for EPS growth” at Rite Aid, including the acquisition of Envision. Deutsche Bank has a Buy rating on Rite Aid and a $10 target for the stock.

Evercore ISI

Analysts at Evercore like the “generally positive underlying fundamentals” at Rite Aid. Evercore has a Buy rating on the stock and a $9.50 target set.

Cowen

Despite soft sales estimates for the quarter, Cowen analysts “continue to believe guidance may prove conservative as we see upside from generic introductions, the new Wellness+ Plenty program, reimbursement pressure assumptions and the potentially early closing of Envision Rx.” Cowen has an Outperform rating on Rite Aid and a $12 target for the stock.

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