Goldman Sachs Reiterates Neutral Rating, $1.90 PT for Rite Aid

In a company update published earlier today, the Goldman Sachs Group, Inc. reiterated its Neutral rating and $1.90 price target for Rite Aid Corporation

. Goldman Sachs went on to say “RAD continues to deliver beats, albeit off a depressed base, aided by share gains from the WAG/ESRX fallout and accelerating, larger-than-expected benefits from generics. RAD reported 1Q2012 adjusted EBITDA of $274mn, including a $20.9 mn charge related to a class action litigation; adjusted for the charge, EBITDA of $295 mn exceeded our $284 mn estimate and the Street's $271 mn, and compares with $263 mn in the prior year's quarter. Net loss for the quarter was ($0.03), but included a $0.04 loss related to a debt modification charge and legal settlement, implying core earnings of $0.01, ahead of our ($0.01) and the Street's ($0.04).” Rite Aid Corporation closed yesterday at $1.25.