UPDATE: BTIG Initiates Rite Aid with PT of $2.25 on Demographic Trends

BTIG initiated coverage on Rite Aid

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.