UBS Initiates Coverage of Rite Aid with a Neutral Rating and

June 01, 2011

UBS initiated coverage of Rite Aid Corp (NYSE:RAD) today with a neutral rating and a price target of $1.10 for the stock.The bank sees Rite Aid "between a rock and a hard place," and doesn't believe the growth in generics will be able to get RAD out of the red. They project EPS losses for the company in the foreseeable future.Rite Aid has a potential upside of 7.1% based on a current price of $1.05 and an average consensus analyst price target of $1.13.