Recent analyst actions on RAD
Wall Street kept its stance unchanged on Rite Aid (RAD) after its third-quarter results. Evercore ISI, however, initiated coverage on the company on January 5 with an “underperform” rating.
Rite Aid is covered by nine Wall Street analysts, who have collectively rated the stock a 2.9 on the stock on a scale of 1 (strong buy) to 5 (sell). Its ratings worsened from 2.6 at the beginning of 2017 to 3.1 in August before finally improving to 2.9 at the end of the year.
Rite Aid’s competitors Walgreens and CVS have better ratings. While WBA is rated a 2.2, CVS has received a rating of 2.0.
Discussing Wall Street’s take on RAD
Around 89% of Wall Street analysts, including RBC Capital, Deutsche Bank, and Loop Capital, suggest holding the company. In comparison, 41% recommend holding WBA, and 29% recommend holding CVS’s stock.
11% of analysts suggest buying RAD. In contrast, 71% and 59% of analysts suggest buying CVS Health and Walgreens, respectively.
What to expect from RAD
Wall Street doesn’t see much upside on Rite Aid’s stock. It has predicted an average target price of $2.07 for the company. The individual target price for the company ranges between $1.50 (26% downside) and $2.50 (23% upside).
Investors looking for exposure to Rite Aid through ETFs can choose to invest in the First Trust Consumer Staples AlphaDEX Fund (FXG), which invests 1.2% of its portfolio in the company.