- Ahead of the Company's fiscal Q4 results on April 14, Deutsche Bank downgraded Rite Aid Corporation (NYSE:RAD) to Sell from Hold with a price target of $1, down from $16.
- Analyst George Hill believes COVID has "hastened the decline" for the Company, and he sees the potential for a "dramatic negative inflection point" as Rite Aid's preliminary fiscal 2023 outlook "seems to be unattainable."
- The key investor focus will be Rite Aid's guidance for FY 23. The analyst writes in a research note that the Company has previously indicated it could generate well over $430 million in EBITDA.
- At a number below $400 million, the equity "arguably has no value as the company is not in a position to generate real returns to shareholders," says the analyst.
- Also Read: Rite Aid Q3 Sales Miss Street View; Reveals Store Closure Plan.
- Beyond Meat Inc (NASDAQ:BYND) introduced the Beyond Burger and Beyond Meatballs at approximately Rite Aid 2,000 stores nationwide.
- Earlier this week, Rite Aid said that people with Medicare Part B could visit any Rite Aid location and receive up to eight OTC COVID-19 tests every month at no cost.
- As part of the Medicare COVID-19 Over-the-Counter Test Initiative, people covered by Medicare Part B can bring their red, white, and blue Medicare card to any Rite Aid location to receive their no-cost tests.
- Beneficiaries can get up to eight free, over-the-counter tests, or Flow Flex tests, per calendar month through the end of the COVID-19 public health emergency (PHE).
- Price Action: RAD shares are down 21.40% at $6.64 during the market session on the last check Thursday.
