Raymond James Edges Rite Aid Price Target Modestly Higher from $5 to $6, Reiterates Outperform

In a report published early Tuesday, Raymond James reiterated an Outperform rating for Rite Aid Corp

and raised the price target from $5 to $6. The firm's John Ransom said the updated target follows "a deeper dive into the company's net operating loss (NOL) position. In short, we believe the present value of the NOLs is more than $700 million or close to $0.75/share which, after factoring in the company's valuation framework, reduces the company's EV/EBITDA multiple by more than a half of a turn." With shares of Rite Aid trading lower to $5.01 with the rest of the market, Ransom's new price target represents potential upside of about 20 percent.