Rite-Aid climbs 9% on Dec. comps; Deutsche: Rite-Aid may be taking share

|By:, SA News Editor

Rite-Aid (RAD +8.5%) shares continue an ascent sparked by strong Dec. comp sales numbers.

Deutsche Bank's George Hill, who reiterated a Buy rating and PT of $7, believes the numbers are indicative of Rite-Aid's progress on store remodels and closings of less productive locations.

+2.9% in overall Y/Y growth was dragged by a 2% Y/Y decline in prescription count, which Hill attributed to a decrease in flu-related prescriptions and shots.

The jury is still out on whether "Rite Aid is taking share [from other drug retailers], possibly indicating more promotional pricing at Rite Aid," the analyst observes.

Walgreen WAG +0.2% and CVS +0% are close to neutral on the day.