Rite Aid (RAD) To More Than Double. To $4.

Rite Aid (RAD) is down about 80% from a year ago and is continuing to flounder. But Lehman says everything’s hunky dory from here:

The recent financings Rite Aid completed this week have given it a surplus of liquidity to meet its upcoming capital needs, while pushing out debt maturities to 2013. This should give the co plenty of time to accomplish the goals it has set out for itself, most importantly to drive improved sales and profits at the stores it acquired a mere 13 months ago. The bulk of the integration work is done, so now it must attract consumers to the upgraded stores, a process that will take some time.

Lehman calls RAD a “deep value investment”, maintains OVERWEIGHT, and target price of $4.

See Also:
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(WMT, MO, F, GM)

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