Rite Aid Corp Makes A "RAD" Move Up With A $4 Price Target From UBS (RAD)
February 18, 2010 1:13 PM
Neil Currie, an analyst at UBS Bank, really has put the pressure on Rite Aid Corp (NYSE: RAD) shorts today with his research report issuing Rite Aid as a Buy with a $4 price target. With a 52-week low of just $0.20, Rite Aid was being speculated as a possible bankruptcy play just a year ago.
With a buyout of a similarly lined business, Neil Currie was quick to respond seeing RAD as a take over target of $4 per share. Shares of Rite Aid are currently trading up +13.67% to $1.58 per share. This move shows there is money backing up the analyst's valuations and shares of the stock could be one of the best performing stocks in 2010 if the price target is hit. Shares of the stock are among the top 10 most active on the NYSE today which means we could see shorts get squeezed on momentum going forward.
Options Trade and Probability of Movement
Options of Rite Aid are indicating a 25.56% chance of touching $2.50 by the third week of July in 2010 and a 11.20% chance of closing above it in the same time frame. So although it is a long shot, the odds are starting to shape up into the shareholders' favor.
For more option trades click here.
