Goldman Sachs On RAD 4Q

Goldman Sachs has issued a report on the fourth quarter results from Rite Aid Corp. (NYSE: RAD).

According to the report, “Rite Aid's 4Q results marked a step in the right direction, as the firm is benefitting from macro tailwinds (employment) while gaining traction in initiatives (loyalty program, 15 minute prescription guarantee). Also, guidance for 2012 was generally solid, with adj. EBITDA guidance of $800-$900 mn, which straddled our prior $841 mn estimate, on 2-3.5% sales growth. RAD's 4Q adjusted EBITDA of $215 mn beat our $192 mn estimate, with gross margin beating our expectation and SG&A essentially in-line.”

RAD is rated Neutral and has a $1.25 Price Target.

RAD closed at $1.25 a share.