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Rite Aid (RAD) Stock: Why The Price Substantially Fell TodayApr 7th, 2022 10:47 EST
- The stock price of Rite Aid Corporation (NYSE: RAD) fell by over 25% during intraday trading today. This is why.
The stock price of Rite Aid Corporation (NYSE: RAD) fell by over 25% during intraday trading today. Investors are responding negatively to a bearish research report.
Deutsche Bank downgraded Rite Aid to a “Sell” rating from a “Hold” rating. And the price target was reduced from $16 to $1.
In a research report, Deutsche Bank said that Rite Aid is unlikely going to achieve the preliminary outlook for fiscal 2023. Rite Aid will be reporting its Q4 2022 results next week and the focus will be on the guidance. The company previously indicated a target of over $430 million in EBITDA.
To continue as an operating company, Rite Aid would need to generate about $400 million to $450 million in annual adjusted EBITDA to continue as an operating company according to Deutsche Bank. And a figure below $400 million would imply that the company’s equity has no value with no real returns for shareholders.
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