Why Rite Aid Stock Is Crashing Today
Rite Aid (NYSE: RAD) stock was crashing on Thursday with shares plunging 24.5% as of 11:56 a.m. ET. The steep decline came after Deutsche Bank analyst George Hill downgraded the stock from "hold" to "sell" and slashed his price target from $16 to $1. Hill wrote to investors that it's possible that Rite Aid won't be able to make enough profits to continue operations.
Investors can't ignore such a dire warning. But is Deutsche Bank's opinion overly bleak? Maybe.
Rite Aid posted adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $154.8 million in its quarter ending Nov. 27, 2021, up nearly 13% year over year. In Rite Aid's quarterly update, CEO Heyward Donigan even predicted a strong increase in the company's fiscal 2022 fourth quarter, which ended Feb. 26, 2022.
Source Fool.com
