JP Morgan Maintains Neutral Rating on Rite Aid

JP Morgan is maintaining its Neutral rating on shares of Rite Aid (NASDAQ: RAD).

“We maintain our Neutral rating on Rite Aid,” JP Morgan in a report this morning. “Investor focus remains on execution, and whether the company can drive sustainable improvement in the same store sales trend and deliver the expected EBITDA contribution from ongoing restructuring initiatives.

“While we believe that the company could be successful in driving a turnaround over the longer term, we believe the near term could continue to be bumpy due to the impact of the economy (which has partly contributed to weak same store sales trends), potential reimbursement pressure, and the considerable amount of work to be done on executing the strategic plan.”

Rite Aid closed Thursday at $1.17.