Deutsche Bank Sees Potential 'Dramatic Negative Inflection Point' For Rite Aid

Ahead of the Company's fiscal Q4 results on April 14, Deutsche Bank downgraded Rite Aid Corporation RAD to Sell from Hold with a price target of $1, down from $16.
Analyst George Hill believes COVID has "hastened the decline" for the Company, and he sees the potential for a "dramatic negative inflection point" as Rite Aid's preliminary fiscal 2023 outlook "seems to be unattainable."
The key investor focus will be Rite Aid's guidance for FY 23. The analyst writes in a research note that the Company has previously indicated it could generate well over $430 million in EBITDA.
At a number below $400 million, the equity "arguably has no value as the company is not in a position to generate real returns to shareholders," says the analyst.
Also Read: Rite Aid Q3 Sales Miss Street View; Reveals Store Closure Plan.
Beyond Meat Inc BYND introduced the Beyond Burger and Beyond Meatballs at approximately Rite Aid 2,000 stores nationwide.
Earlier this week, Rite Aid said that people with Medicare Part B could visit any Rite Aid location and receive up to eight OTC COVID-19 tests every month at no cost.
As part of the Medicare COVID-19 Over-the-Counter Test Initiative, people covered by Medicare Part B can bring their red, white, and blue Medicare card to any Rite Aid location to receive their no-cost tests.
Beneficiaries can get up to eight free, over-the-counter tests, or Flow Flex tests, per calendar month through the end of the COVID-19 public health emergency (PHE).
Price Action: RAD shares are down 21.40% at $6.64 during the market session on the last check Thursday.

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Deutsche Bank Sees Potential 'Dramatic Negative Inflection Point' For Rite Aid

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