UPDATE: BTIG Raises PT on Rite Aid Following Very Strong Fiscal Quarter Report

In a report published Thursday, BTIG Research analyst William Frohnhoefer reiterated a Buy rating on Rite Aid Corporation RAD, and raised the price target to $6.00. In the report, BTIG Research noted, “Buy-rated Rite Aid reported a very strong fiscal quarter on September 19th. Much of what we found comforting about the results, and about the encouraging forward guidance that accompanied them, was what they didn't include. The second quarter's operating results were a marked improvement over last year's second quarter. This year's second quarter did not include any new benefits from the dispute between Walgreen's and Express Scripts. Instead, this quarter's results incorporated the sustained retention of those customers – according to management's comments on the conference call, a retention of better than 75%. This quarter's results also did not include sizeable benefits from new generic introductions as previous quarters' results did – generics had a only 249 basis point negative impact on second quarter revenues, down from 750bps in the previous second quarter.” Rite Aid Corporation closed on Wednesday at $5.01.