UPDATE: Goldman Sachs Reiterates Neutral, $1.90 PT on Rite Aid Corporation Post June Same-Store Sales

Goldman Sachs reiterated its Neutral rating and price target of $1.90 on Rite Aid Corporation RAD, in a research report published Friday morning, as June same-store sales reflect earlier and stronger generic ramp. In the report, Goldman Sachs stated, "RAD reported June SSS down 1.0% yoy, including pharmacy SSS down 1.6% and front-end SSS up 0.3%. Pharmacy SSS were weighed down by generics – not a bad thing (670 bps headwind in June, compared with 410 bps in May), which more than offset better comparable store script growth (+2.9%, up 30 bps mom). Generic versions of Plavix and Lipitor were key drivers of the generic headwind, as both drugs were multi-source during the month, selling at a large discount to brand pricing. Front-end SSS decelerated mom (+0.3% in June vs. +1.3% in May), primarily due to the July 4th holiday shift, which moved some selling days from the June period into July. We expect a boost to July SSS as a result." Rite Aid Corporation closed at $1.40 on Thursday.