UPDATE: Deutsche Bank Initiates Coverage on Rite Aid Corporation with Buy Rating, $7 PT on Positive Outlook

In a report published Thursday, Deutsche Bank analyst George Hill initiated coverage on

with a Buy rating and $7.00 price target. In the report, Deutsche Bank noted, “We are initiating coverage of Rite Aid with a Buy rating. We believe that Rite Aid should be able to maintain its recent improvement in profitability as store remodels, SG&A cost initiatives, and lower interest expense all help to offset pharmacy reimbursement pressures. We also see a number of strategic actions that Rite Aid could take that would drive profitability ahead of our current forecasts.” Rite Aid Corporation closed on Wednesday at $5.10.