UPDATE: BTIG Initiates Rite Aid with PT of $2.25 on Demographic Trends
BTIG initiated coverage on Rite Aid (NYSE: RAD) with a $2.25 price target.
BTIG commented, "Rite Aid operates in a sector that stands to benefit from demographic trends and potentially from legislative undertakings as well. The trends are well-known and easily identifiable: the US population is aging, and the post-Second World War cohort, which is disproportionately large, is moving into the 65+ category. That category, in turn, is an increasingly long-lived customer, an increasingly prescription-intensive customer and an increasingly value-focused customer. Add to this the closing of the “donut hole” in Medicare Part D – a broadly popular policy initiative – and the stage is set for an enduring trend of incremental growth."
Rite Aid closed at $1.14 on Wednesday.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.