Rite Aid Corporation (RAD) Upgraded by Zacks to OUTPERFORM

Zacks Zacks Investment Research upgraded shares of Rite Aid Corporation (RAD) from NEUTRAL to OUTPERFORM on January 30, 2013, with a target price of $1.75.

We upgrade our recommendation on Rite Aid to Outperform following the company's outstanding performance during the third-quarter of fiscal 2013. Rite Aid swing to a profit of $0.07 per share that fared far better than both the year-ago quarter's loss of $0.06 as well as the Zacks Consensus Estimate of a loss of $0.04. Results also improved sequentially as rise in front-end sales, favorable script trends and introduction of new generic medications boosted the quarterly profits. Going forward, Rite Aid remains focused on expanding its portfolio of generic medications, which in turn will facilitate the company in enhancing margins. Moreover, Rite Aid is expanding its pharmacy and clinical services through its Wellness+ customer loyalty program and remodeling its wellness stores. We believe these programs and initiatives will enable the company to broaden its customer base and facilitate it in sustaining its upbeat performance.

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